The portuguese natural gas market in the european context

Abstract

The Portuguese natural gas market is recent and small – being an emergent market according to Directive 98/30/EC. It is still protected and monopolistic while most other European countries have already liberalized, at least partially, their natural gas markets. This paper focuses on the process of restructuring the energy market in the European Union, and the present situation in Portugal, and emphasizes the regional dimension of the Portuguese market. The natural gas price strategies followed by Portuguese companies are analyzed, and a comparison with those of liberalized Europe is attempted. Special attention is given to the United Kingdom, as an example of a completely liberalized market, and also to Spain due to its close links to the Portuguese energy sector. From the results obtained, possible future scenarios for Portugal in a liberalization context are presented.