UNUnited Nations Economic Commission for Europe

Press Release

[Index]

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