European gas transportation system
developments
in the 21st century
Geneva, 25 January 2002
A round-table discussion entitled "European gas
transportation system developments in the 21st century" was held on
23 January 2002 at the Palais des Nations in Geneva and attended by more than
100 delegates representing 32 member countries of the United Nations Economic
Commission for Europe (UNECE).
The four main speakers presented the views and programmes
of the French, German and Slovak gas companies (Gaz de France, Ruhrgas and SPP)
and of the European Commission (DG TREN) concerning future developments
in the natural gas transportation system of the UNECE region.
The European Commission for its part set out the key points
of its present thinking on the new conditions that will require the gas
industry to make best possible use of the available infrastructure and create
new routes and connections to bring natural gas to existing and emergent
markets.
The Commission intends to put in place a regulatory
framework and incentives for investment to allow the gas industry to develop a
European market for the transportation of natural gas that is transparent,
non-discriminatory and able to cater for the expected growth in gas
consumption while guaranteeing security of supply. To this end, the Commission
envisages the following measures:
- Rapid adoption of the proposed directive amending
Gas Directive 98/30/EC;
- The association of gas transportation system
operators (GTE) has undertaken to propose measures in March 2002 for the
transparent use of infrastructure (such as the provision of information
about capacities available at entry points on the different networks);
- Also in March 2002, the Council of European Energy
Regulators is to formulate a proposal defining good practices for the
allocation of capacity and tarification of access to the network.
The Commission’s initiative reflects the political will
to improve gas-to-gas competition in the large internal market. This goal is
to be achieved by establishing a different market structure making it possible
in particular to extend the transportation networks and strengthen security of
supply for natural gas in the European Community.
The gas industry as a whole responded to this presentation by underscoring
the following key points:
- Historically gas transportation system operators
have always succeeded in meeting the market’s gas needs by investing
in the necessary infrastructure when the proposed projects were shown to
be economically and financially viable. It intends to pursue this policy
in the future if the new regulatory conditions permit.
- Very considerable investment (US$ 200 to 300
billion) must be foreseen by 2020 to put in place the production and
transportation infrastructure needed to allow for the expected
development of the gas market in Europe. A stable, favourable and
predictable regulatory framework is a sine qua non for making such
financial commitments over the long term.
- Western European countries are attaching great
importance to the continuity of long-term contracts, including both
supply contracts and contracts for transportation by gas pipeline or LNG
tanker.
- The regulatory authorities established pursuant to
Gas Directive 98/30/EC will play a major role in this regard, having
both to monitor conditions of access to the network in the short term
and to allow for a reasonable return on investment over the long term
that only the gas companies can ensure.
- On the issue of enlargement of the European Union,
particular attention must be paid to the candidate countries, and
especially to strengthening the interconnections of their networks with
the existing grid in member countries and to the conditions for
negotiating gas transit contracts.
- Some Central European countries like Slovakia are
also having to deal with a set of complex problems including issues
related to the diversification of their sources of supply of natural
gas.
Security of supply for natural gas in Europe is not seen as
a medium-term problem since this plentiful and environmentally friendly fuel
is considered as an important albeit not the only component of a diversified
energy policy that is also conducive to the development of renewable forms of
energy. Bearing in mind recent trends, particular attention will have to be
paid to the security and safety of the facilities making up the wider European
transportation network.
The UNECE Working Party on Gas remains convinced that the
region’s gas industry will be able to achieve its objectives in a context of
rapid change. Regulatory developments in the European Union deserve particular
attention. These developments should not, for the sake of short-term ends,
hamper the functioning of an industry whose investments are made to cover a
period of more than 10 years.
Fore more information please contact:
Yannick Guerrini or Alexandre Chachine
Division for Sustainable Energy
United Nations Economic Commission for Europe (UNECE)
Palais des Nations
CH-1211 Geneva 10, Switzerland
Telephone: + 41(0)22 917 24 46
Telefax: + 41(0)22 917 00 38
E-mail: [email protected] or [email protected]
Internet: http://www.unece.org
Ref: ECE/ENE/02/01