Are global natural gas markets integrated?

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Analysis reveals volatility spillovers and integration levels among U.S., U.K., and Japan gas markets, suggesting regional cooperation is essential.

The study shows that the Japanese and British natural gas markets are closely interconnected, significantly reacting to each other's shocks.
Dynamic correlations between the Japan and U.K. markets remain high, indicating strong long-term linkages in the global natural gas framework.
In contrast, the U.S. natural gas market displays a more insulated structure with limited influence on the UK and Japanese markets.
The findings imply that while Europe and Asia exhibit strong interdependence, the U.S. maintains a degree of strategic autonomy in global energy dynamics.

Reza Bilgin (2025) studied this question.

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Analysis reveals volatility spillovers and integration levels among U.S., U.K., and Japan gas markets, suggesting regional cooperation is essential.