Bottom-up design of a gas futures market in East Asia: Lessons from the Dojima rice exchange

Shi, X; Li, Y; Reshetova, E

Bottom-up design of a gas futures market in East Asia: Lessons from the Dojima rice exchange

Shi, X

Li, Y Reshetova, E

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Publisher:: Elsevier BV
Publication Type:: Journal Article
Citation:: Natural Gas Industry B, 2016, 3, (4), pp. 377-386
Issue Date:: 2016-10-01

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Field	Value	Language
dc.contributor.author	Shi, X https://orcid.org/0000-0001-9653-7395
dc.contributor.author	Li, Y
dc.contributor.author	Reshetova, E
dc.date.accessioned	2022-03-31T19:35:11Z
dc.date.available	2022-03-31T19:35:11Z
dc.date.issued	2016-10-01
dc.identifier.citation	Natural Gas Industry B, 2016, 3, (4), pp. 377-386
dc.identifier.issn	2352-8540
dc.identifier.issn	2352-8559
dc.identifier.uri	http://hdl.handle.net/10453/155812
dc.description.abstract	The natural gas market in East Asia remains fragmented without a functioning benchmark price to duly reflect the dynamics of demand and supply forces in the region. A functional regional gas futures market, which is highly dependent on the presence of well-developed physical spot trading, is yet to be established. Since the intra-regional pipeline connection is largely non-existent in East Asia, it is the LNG spot cargo trading that is likely to become the basis for the regional gas futures market. This paper offers a novel approach to understanding the development of such a market by analyzing the experience of a different commodity market – the Dojima Rice Exchange (DRE) – and identifying potentially transferrable lessons in the market design and the role of government regulations. Based on the case study analysis, implications for the development of natural gas trading hubs in East Asia are offered and an LNG futures exchange design is put forward.
dc.language	en
dc.publisher	Elsevier BV
dc.relation.ispartof	Natural Gas Industry B
dc.relation.isbasedon	10.1016/j.ngib.2016.12.003
dc.rights	info:eu-repo/semantics/openAccess
dc.title	Bottom-up design of a gas futures market in East Asia: Lessons from the Dojima rice exchange
dc.type	Journal Article
utslib.citation.volume	3
utslib.for	1402 Applied Economics
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/DVC (International)
pubs.organisational-group	/University of Technology Sydney/DVC (International)/Australia-China Relations Institute
utslib.copyright.status	open_access	*
dc.date.updated	2022-03-31T19:35:10Z
pubs.issue	4
pubs.publication-status	Published
pubs.volume	3
utslib.citation.issue	4

Abstract:

The natural gas market in East Asia remains fragmented without a functioning benchmark price to duly reflect the dynamics of demand and supply forces in the region. A functional regional gas futures market, which is highly dependent on the presence of well-developed physical spot trading, is yet to be established. Since the intra-regional pipeline connection is largely non-existent in East Asia, it is the LNG spot cargo trading that is likely to become the basis for the regional gas futures market. This paper offers a novel approach to understanding the development of such a market by analyzing the experience of a different commodity market – the Dojima Rice Exchange (DRE) – and identifying potentially transferrable lessons in the market design and the role of government regulations. Based on the case study analysis, implications for the development of natural gas trading hubs in East Asia are offered and an LNG futures exchange design is put forward.

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http://hdl.handle.net/10453/155812