Making a Global Gas Market: Territoriality and Production Networks in Liquefied Natural Gas
By G. Bridge, M. Bradshaw. 2017
123 citations recorded by the source corpus.
abstract Energy markets are an important contemporary site of economic globalization. In this article we use a global production network (GPN) approach to examine the evolutionary dynamics of the liquefied natural gas (LNG) sector and its role in an emerging global market for natural gas. We extend recent work in the relational economic geography literature on the organizational practices by which production networks are assembled and sustained over time and space; and we address a significantly underdeveloped aspect of GPN research by demonstrating the implications of these practices for the territoriality of GPNs. The article introduces LNG as a techno-material reconfiguration of natural gas that enables it to be moved and sold beyond the continental limits of pipelines. We briefly outline the evolving scale and geographic scope of LNG trade, and introduce the network of firms, extraeconomic actors, and intermediaries through which LNG production, distribution, and marketing are coordinated. Our analysis shows how LNG is evolving from a relatively simple floating pipeline model of point-to-point, binational flows orchestrated by producing and consuming companies and governed by long-term contracts, to a more geographic and organizationally complex production network that is constitutive of an emergent global gas market. Empirically the article provides the first systematic analysis within economic geography of the globalization of the LNG sector and its influence on global gas markets, demonstrating the potential of GPN (and related frameworks) to contribute meaningful analysis of the contemporary political economy of energy. Conceptually the article pushes research on GPN to realize more fully its potential as an analysis of network territoriality by examining how the spatial configuration of GPNs emerges from the organizational structures and coordinating strategies of firms, extraeconomic actors and intermediaries; and by recognizing how network territoriality is constitutive of markets rather than merely responsive to them.
Subfields: Economics and Econometrics, Industrial and Manufacturing Engineering, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/677dde5e199126226844ee8c17225831366c5c35
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In Economics and Econometrics
Citations in the corpus
- Just cuts for fossil fuels? Supply-side carbon constraints and energy transition (2020, background): “…than other fossil fuels, and backed by long-term bilateral sales contracts, but the spread of liquefied natural gas (LNG) and more malleable contractual terms have increased flexibility in the natural gas trade and contributed to making it more of a ‘global market’ (Bridge and Bradshaw, 2017).”