THE INTERDEPENDENCE BETWEEN THE CREATION OF GAS EXCHANGES AND THE FACTORS OF EUROPEAN INTEGRATION

##plugins.themes.bootstrap3.article.main##

##plugins.themes.bootstrap3.article.sidebar##

Published: Aug 31, 2023

  Oleksandra Kurbet

Abstract

The purpose of this paper is to identify the prerequisites for the creation of gas exchanges in the European gas market in the process of European integration and to identify the impact of strengthening market mechanisms on Ukraine's attractiveness to the EU in this context. In line with this goal, the author has found that the creation of gas exchanges was a direct consequence of European policy documents aimed at liberalizing and building a single internal natural gas market. This is evidenced by the emergence of gas exchanges in European countries over the past twenty years with the introduction of three energy packages. It is argued that gas exchanges and hubs are essential elements of a liberalized gas market, as they ensure its functioning on a competitive basis in accordance with the functions and principles of their activities. The Directives do not directly prescribe the requirements for the establishment of gas exchanges. However, the principles of liberalisation, third-party access, promotion of competition in the energy market and attraction of many sellers and buyers are implemented with the functioning of the gas exchange institute. The author discusses the impact of strengthening market mechanisms on Ukraine's attractiveness to the EU. The measures taken by Ukraine to implement the requirements of the Third Energy Package, together with the potential creation of a gas hub, will contribute to its attractiveness as a reliable partner and a full-fledged player in the gas market, capable of contributing to the achievement of energy security for European countries.

How to Cite

Kurbet, O. (2023). THE INTERDEPENDENCE BETWEEN THE CREATION OF GAS EXCHANGES AND THE FACTORS OF EUROPEAN INTEGRATION. Economics & Education, 8(2), 12-17. https://doi.org/10.30525/2500-946X/2023-2-2
Article views: 58 | PDF Downloads: 90

##plugins.themes.bootstrap3.article.details##

Keywords

natural gas, gas exchange, energy directives, European integration, Ukraine

References

Andersen, S. S. (2001). Energy policy: Interest interaction and supranational authority. In S. Andersen & K. Eliassen (Eds.), Making Policy in Europe (Second, pp. 106–123). SAGE Publications. DOI: https://doi.org/10.4135/9781446220092

Broadstock, D. C., Li, R., & Wang, L. (2020). Integration reforms in the European natural gas market: A rolling-window spillover analysis. Energy Economics, 92, 104939. DOI: https://doi.org/10.1016/J.ENECO.2020.104939

Council of European Energy Regulators (2011). CEER final advice on the regulatory oversight of energy exchanges. E-source: https://www.ceer.eu/documents/104400/-/-/28aa309a-6b40-c401-372a-789c5694f6da

Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC. E-source: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32003L0055

Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC. E-source: https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=celex%3A32009L0073

Directive 98/30/EC of the European Parliament and of the Council of 22 June 1998 concerning common rules for the internal market in natural gas. E-source: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A31998L0030

Dubovskyi, О. (2018). Exchange trading of natural gas. Ukrainian International Conference Petroleum X. E-source: https://www.ueex.com.ua/files/lastovets-ukrenergyexchange.pdf (in Ukrainian)

Dyachenko, S. (2013). Energy directives of the European Union, their impact on the the gas market reform in Ukraine. E-source: http://biaf.org.ua/dopovidi-ta-vistupi/energetichni-direktivi-evropeyskogo-soyuzu-yih-vplivi-na-reformuvannya-gazovogo-rinku-ukrayini.html (in Ukrainian)

Eberlein, B. (2008). The making of the European energy market: The interplay of governance and government. Journal of Public Policy, 28(1), 73–92. DOI: https://doi.org/10.1017/S0143814X08000780

Haase, N. (2008). European gas market liberalisation: Are regulatory regimes moving towards convergence? In Convergence (Issue May). E-source: https://www.oxfordenergy.org/wpcms/wp-content/uploads/2010/11/NG24-EuropeanGasMarketLiberalisationArerRegulatoryRegimesMovingTowardsConvergence-NadineHaase-2008.pdf

Haizmann, J., Malakhovskyi, M., & Zahnitko, О. (2018). Report on the progress of work on the First Stage of the project on providing technical assistance to the National Commission for Securities and the Stock Market in harmonizing the legislation of Ukraine, which provides for the creation of modern organized trading in financial instruments. E-source: https://www.nssmc.gov.ua/wp-content/uploads/2018/04/190522-Report-Activity-1_final_UA_OZA.docx (in Ukrainian)

Heather, P. (2015). The evolution of European traded gas hubs. DOI: https://doi.org/https://doi.org/10.26889/9781784670467

Heather, P. (2021). European Traded Gas Hubs: German hubs about to merge.

Kurbet, O. (2022). Institutional preconditions and genesis of natural gas exchange trading. Economics & Education, 7(3), 27–34. DOI: https://doi.org/10.30525/2500-946X/2022-3-4

Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency. (n.d.). E-source: https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A32011R1227

Renou-Maissant, P. (2012). Toward the integration of European natural gas markets:A time-varying approach. Energy Policy, 51, 779–790. DOI: https://doi.org/10.1016/J.ENPOL.2012.09.027

Yukhymets, R. (2021). Rynky pryrodnoho hazu Ukrainy ta YeS: liberalizatsiia ta intehratsiia [Natural gas markets of Ukraine and the EU: liberalization and integration]. R. Z. Podolets (Ed.). Kyiv: State Organization “Institute of the Economy and Forecasting of the National Academy of Sciences of Ukraine”. (in Ukrainian)