Numerical modeling and assessment of natural gas pipeline separation in China: the data from Henan Province

Abstract China’s natural gas market is focusing on price reform and aims to reconstruct vertically integrated industrial chains in the future. Based on the mixed complementarity problem model of gas markets with nodes in Henan Province, China, as an example, this paper applies numerical modeling to...

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Autores principales: Jian-zhong Xiao, Wei-cheng Kong, Xiao-lin Wang, Ming Li
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Lenguaje:EN
Publicado: KeAi Communications Co., Ltd. 2019
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Acceso en línea:https://doaj.org/article/f098312b464649e6ba345f3a044421f3
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spelling oai:doaj.org-article:f098312b464649e6ba345f3a044421f32021-12-02T11:09:18ZNumerical modeling and assessment of natural gas pipeline separation in China: the data from Henan Province10.1007/s12182-019-00400-51672-51071995-8226https://doaj.org/article/f098312b464649e6ba345f3a044421f32019-11-01T00:00:00Zhttp://link.springer.com/article/10.1007/s12182-019-00400-5https://doaj.org/toc/1672-5107https://doaj.org/toc/1995-8226Abstract China’s natural gas market is focusing on price reform and aims to reconstruct vertically integrated industrial chains in the future. Based on the mixed complementarity problem model of gas markets with nodes in Henan Province, China, as an example, this paper applies numerical modeling to simulate the effects of social welfare and equilibrium prices on nodes in two scenarios: pipeline integration and pipeline separation. The findings reveal the following: (1) Pipeline separation yields greater overall social welfare than pipeline integration, with the welfare shifting from gas producers to consumption markets. (2) Pipeline separation lowers the equilibrium consumption prices by driving competition among gas supply sources. (3) Pipeline separation will increase the contribution of natural gas to primary energy.Jian-zhong XiaoWei-cheng KongXiao-lin WangMing LiKeAi Communications Co., Ltd.articleNatural gasMarket equilibriumMixed complementarity problemPipeline separationPipeline integrationScienceQPetrologyQE420-499ENPetroleum Science, Vol 17, Iss 1, Pp 268-278 (2019)
institution DOAJ
collection DOAJ
language EN
topic Natural gas
Market equilibrium
Mixed complementarity problem
Pipeline separation
Pipeline integration
Science
Q
Petrology
QE420-499
spellingShingle Natural gas
Market equilibrium
Mixed complementarity problem
Pipeline separation
Pipeline integration
Science
Q
Petrology
QE420-499
Jian-zhong Xiao
Wei-cheng Kong
Xiao-lin Wang
Ming Li
Numerical modeling and assessment of natural gas pipeline separation in China: the data from Henan Province
description Abstract China’s natural gas market is focusing on price reform and aims to reconstruct vertically integrated industrial chains in the future. Based on the mixed complementarity problem model of gas markets with nodes in Henan Province, China, as an example, this paper applies numerical modeling to simulate the effects of social welfare and equilibrium prices on nodes in two scenarios: pipeline integration and pipeline separation. The findings reveal the following: (1) Pipeline separation yields greater overall social welfare than pipeline integration, with the welfare shifting from gas producers to consumption markets. (2) Pipeline separation lowers the equilibrium consumption prices by driving competition among gas supply sources. (3) Pipeline separation will increase the contribution of natural gas to primary energy.
format article
author Jian-zhong Xiao
Wei-cheng Kong
Xiao-lin Wang
Ming Li
author_facet Jian-zhong Xiao
Wei-cheng Kong
Xiao-lin Wang
Ming Li
author_sort Jian-zhong Xiao
title Numerical modeling and assessment of natural gas pipeline separation in China: the data from Henan Province
title_short Numerical modeling and assessment of natural gas pipeline separation in China: the data from Henan Province
title_full Numerical modeling and assessment of natural gas pipeline separation in China: the data from Henan Province
title_fullStr Numerical modeling and assessment of natural gas pipeline separation in China: the data from Henan Province
title_full_unstemmed Numerical modeling and assessment of natural gas pipeline separation in China: the data from Henan Province
title_sort numerical modeling and assessment of natural gas pipeline separation in china: the data from henan province
publisher KeAi Communications Co., Ltd.
publishDate 2019
url https://doaj.org/article/f098312b464649e6ba345f3a044421f3
work_keys_str_mv AT jianzhongxiao numericalmodelingandassessmentofnaturalgaspipelineseparationinchinathedatafromhenanprovince
AT weichengkong numericalmodelingandassessmentofnaturalgaspipelineseparationinchinathedatafromhenanprovince
AT xiaolinwang numericalmodelingandassessmentofnaturalgaspipelineseparationinchinathedatafromhenanprovince
AT mingli numericalmodelingandassessmentofnaturalgaspipelineseparationinchinathedatafromhenanprovince
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