Natural Gas Pricing in Canada

Pricing Natural Gas Distribution in Mexico

We examine regulation of distribution tariffs in the Mexican natural gas industry. Average revenue in each period is constrained not to exceed an upper bound and is calculated as the ratio of total revenue to output in the current period. This regime implies incentives for setting two-part tariffs strategically. The usage charge is typically dropped to its lowest feasible level while the fixed ...

Indifference pricing of natural gas storage contracts

Natural gas markets are incomplete due to physical limitations and low liquidity, but most valuation approaches for natural gas storage contracts assume a complete market. We propose an alternative approach based on indifference pricing which does not require this assumption but entails the solution of a highdimensional stochastic-dynamic optimization problem under a risk measure. To solve this...

On the Pricing of Natural Gas Pipeline Capacity

Pipelines play a critical role in matching the supply and demand of natural gas. The pricing of their capacity is an important problem in practice, both for pipeline companies and shippers, the users of this capacity, including natural gas merchants, producers, and local distribution companies. This paper conducts a normative analysis of how pipeline capacity should be priced by each of these p...

Locational Marginal Pricing of Natural Gas subject to Engineering Constraints

We derive a price formation mechanism to maximize social welfare for a pipeline network that delivers natural gas from suppliers to consumers. The system is modeled as a metric graph subject to physical balance laws for steadystate hydraulic flow on edges and mass balance at nodes. The pricing mechanism incorporates engineering constraints on local pressures and energy applied by gas compressor...

Pharmaceutical Pricing and Reimbursement: Canada