A global liquefied natural gas (LNG) market is quickly emerging, with several significant development projects very recently completed or underway; these projects consist of extraction, liquefaction, shipping, regasification, and storage facilities. Exact valuation of the real option to store...

Energy plays a fundamental role in both manufacturing and services, and natural gas is rapidly becoming a key energy source worldwide. Facilitating this emergence is an expanding network of ocean-going vessels that enable the matching of natural gas supply and demand on a global scale. This is...

A fundamental issue in the management of technology innovation, both in manufacturing and service industries, is the comparative evaluation of emerging and incumbent technologies. This evaluation entails the juxtaposition of multiple aspects including process configuration and operational and...

Commodity merchants use real option models to manage their operations. A central element of such a model is its underlying operating policy. We focus on network contracts for the transport capacity of natural gas pipelines, specific energy conversion assets. Practitioners commonly manage these...

In the United States natural gas pipelines lease their transport capacity to shippers via contracts, which shippers manage as real options on differences between natural gas prices at different geographical locations. In practice it is common to value these real options using spread option...