Article | REF: BE7012 V1

Natural gas transmission tariffs in a market economy

Author: Jacques PERCEBOIS

Publication date: December 10, 2024

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1. Natural gas networks: a brief history

It's important to recall the evolution of the natural gas industry in the United States and Europe, two very different situations.

1.1 Natural gas in the United States

The United States has been a pioneer in natural gas development since the 1930s. Gas is either associated with oil or "dry". We're looking for oil, but discovering gas can be profitable if there's an accessible potential market. Natural gas is a mixture whose main constituent is methane (CH 4 ). This gas needs to be purified and can be transported in pipelines, but must be under pressure (usually 70 bar) to increase the flow rate. It can be stored in underground reservoirs, either in aquifers or in salt caverns, in order to manage the variability of...

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Natural gas networks: a brief history