1st april 2008, from 10 am to 12 pm
GIS LARSEN, campus of Fontenay aux Roses
Speaker : Steven Gabriel (University of Maryland)
Abstract : In this paper, we present a detailed and comprehensive complementarity model for computing market equilibrium values in the European natural gas system. Market players include producers and their marketing arms which we call “transmitters”, pipeline and storage operators, marketers, LNG lique.ers, regasi.ers, tankers, and three end-use consumption sectors. The economic behavior of producers, transmitters, pipeline and storage operators, lique.ers and regasi.ers is modeled via optimization problems whose Karush-Kuhn-Tucker (KKT) optimality conditions in combination with market-clearing conditions form the complementarity system. The LNG tankers, marketers and consumption sectors are modeled implicitly via appropriate cost functions, aggregate demand curves, and ex-post calculations, respectively. The model is run on several case studies that highlight its capabilities, including a simulation of a disruption of Russian supplies via Ukraine.