Impact of natural gas storage on natural gas prices an empirical analysis of the Western European gas marke

Abstract

This paper examines the effect of natural gas storage on natural gas prices. Using a comprehensive dataset containing daily data for the period 2010-2014 we estimate two specifications for the Dutch, German and British natural gas markets. We do not find evidence of a stabilising effect of natural gas storage on daily price changes. However we do find strong evidence of a positive effect of inventory levels of natural gas storage facilities on intertemporal price spreads