INCREASED COMPETITION ON THE SUPPLY-SIDE OF THE WESTERN-EUROPEAN NATURAL-GAS MARKET

This paper analyzes how the supply side of the Western European natura l gas market may react if the demand side becomes competitive. We show -using a numerical model of the Western European natural gas market-th at once the demand side of the market is liberalized, each gas-produci ng country has an incentive to break up its gas sellers. The model the refore suggests that there may be numerous producers in a liberalized natural gas market. Hence, in a liberalized market consumers will not be exploited by suppliers.