Deregulation in Natural Gas Industry Sparks Competition and Lower Prices.
The natural gas industry has changed a lot due to deregulation, creating new markets and more competition. Different models have emerged, focusing on decentralization and regulation of monopolistic segments. Two major markets have formed: one for trading natural gas as a commodity and another for trading transportation services. Competition and open entry are important for these markets to work well. Intermediaries and spot markets help with pricing and transaction costs. Two main trading models are used: bilateral trading and poolco. Bilateral trading is simpler but poolco has potential once information sharing issues are solved.