This article examines the possibility of answering the question” can the Arab’s natural gas secure the gas requirements in Europe? “To answer the question, an economic analysis of natural gas was conducted to examine reserve, supply, demand, and international trade first. Second, an economic model to examine distances and transportation costs, for transferring goods from various points of supply to various points of demand, was adopted. The North-West Corner model approach, a QM for Windows-based economic strategy to solve the transportation model problem structure in linear programming, has been used in this regard. Our findings demonstrate that the model is suitable for application since it provides the least distances and the least transportation costs compared to other alternatives. The model estimated that a cost of $309.41 is required to transfer one MMBtu of LNG from origins to final destinations. A decrease of $34.304/MMBtu, 10%, compared to $343.714 /MMBtu. It is concluded that the Arab’s gas could fulfil gas requirements in Europe, and mutual benefit can be accomplished for both parties. European countries will benefit from acquiring new places with less distances and lower delivery costs, and Arab countries would have the chance to get new consumers and play a role in the market given their collective gas reserves and their advantageous strategic locations.

Innovative policy and regional management leverages should create the foundations for the “impulse” to form the Ukrainian market of natural gas and its distribution. Efficient and desirable economic reforms in the activity of the gas distribution companies of the Western region of Ukraine will contribute to increasing their competitiveness level by implementing innovative activities. The paper aims to make an integral estimation of the competitive positions of the gas distribution companies that function on the Western Ukrainian market of natural gas distribution among consumers and develop practical recommendations directed at forming and implementing the innovative policy of improving their competitiveness. To achieve the aim, the authors have developed the methodology of calculating the competitiveness level for the gas distribution companies that function on a certain natural gas distribution market of any scale. Based on the results of the conducted research, the paper shows that the competitiveness condition of most gas distribution companies of the Western region of Ukraine is either of critical – І or satisfactory – ІІ levels. Meanwhile, it is worth mentioning that only AT “Chernivtsihaz” is characterized by the highest rate of competitiveness integral estimation among all the companies operating on the market of the natural gas distribution among consumers in the Western region of Ukraine. Therefore, it was identified as level ІІІ – “decent” level, which is the average competitive indicator.