Skip to main content
U.S. Department of Energy
Office of Scientific and Technical Information

Marginal cost of natural gas in developing countries: concepts and applications

Book ·
OSTI ID:5927975
Many developing nations are facing complex questions regarding the best strategy for developing their domestic gas reserves. The World Bank has addressed these questions in studies on the cost and prices of gas and its optimal allocation among different markets. Based on the average incremental method, an estimate of the marginal cost of natural gas in 10 developing countries proved to be $0.61-1.79/1000 CF or $3.59-10.54/bbl of oil equivalent, far below the border prices of competing fuels in these nations. Moreover, the cost of gas is not expected to rise in these countries within the next 20 years while the reserves/production ratios remain high. The sample involves a variety of gas compositions and production conditions among the countries of Bangladesh, Cameroon, Egypt, India, Morocco, Nigeria, Pakistan, Tanzania, Thailand, and Tunisia.
OSTI ID:
5927975
Country of Publication:
United States
Language:
English