Issues in Global Natural Gas: A Primer and Analysis

36 Pages Posted: 30 Jan 2006

See all articles by Bright Okogu

Bright Okogu

International Monetary Fund (IMF)

Date Written: February 2002


This paper discusses the rising profile of natural gas in global energy, factors constraining its further development, the gas contracting process, and the absence of a global market, which is analyzed in the context of the economic rent in the gas price and the opaque nature of gas contracts. A proposal for rationalizing the trade to ease these constraints is offered. Gas pricing, and factors driving demand are also analyzed using evidence from the literature. FDI can help to monetize some of the 'stranded' gas reserves, but success would depend on an investor-friendly climate, including appropriate tariff regimes in the domestic markets.

Keywords: Natural gas, LNG, pipeline, investment, gas pricing, economic rent, user cost, transportation constraint, sales and purchase agreement

JEL Classification: L22, L71, L95, Q32, Q41

Suggested Citation

Okogu, Bright, Issues in Global Natural Gas: A Primer and Analysis (February 2002). IMF Working Paper No. 02/40, Available at SSRN:

Bright Okogu (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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