MARCOGAZ General Assembly

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MARCOGAZ General Assembly 12th May 2006 The
Natural Gas Industry at Crossroads A review of
they developments and issues addressed by Eurogas
by Jean-Marie Devos, Secretary General Eurogas
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INTRODUCTION

• The Winter events and their consequences
• The debate on Security of Supply
• The debate on Single market
• The debate on competitive policy
• EUROGAS developments Membership trends
• Structure of the presentation

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From Benchmarking to a new Strategy Paper

• 1.) Benchmarking Report 2004
• 2.) Progress Report 2005
• 3.) Green Paper 08.03.2006
• 4.) A wide consultation will follow

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Some background information

• 1.)The Green Paper starts with an analysis of
  fundamentals of the energy and natural gas
  environment.
• It recognizes
• - Growth of sales
• - Increased demand
• - Growing dependency of Europe
• - Growing competition between regions
• gt Call for a long term vision

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Six key policy areas

• Internal market
• Security of supply and solidarity
• Energy mix
• Climate change (including energy efficiency and
  promotion of renewables)
• Innovation
• External energy policy

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Internal market

• The EU needs to complete the internal gas and
  electricity markets.
• A European grid and a European grid code
• A European regulator
• More interconnections
• A framework to stimulate investments
• More effective unbundling
• Boosting of competitiveness including better
  coordination of regulators and competition
  authorities and the Commission

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Security of supply and solidarity between Member
States

• Review of existing Community legislation on oil
  and gas stocks
• A European energy supply observatory for
  enhancing transparency on security of supply in
  the EU
• Improved network security through increased
  cooperation between network operators and through
  a formal European grouping of network operators
• Greater physical security of infrastructure
  possibly through common standards
• Improved transparency on energy stocks at the
  European level

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Energy mix

• The EU needs a wide debate on different energy
  sources, for combating climate change and to
  ensure that overall the EUs energy mix
  contributes to security of supply,
  competitiveness and sustainable development.

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Climate change

• The Commission will possibly propose to the
  Council and the Parliament
• - a clear goal to prioritize energy efficiency
  20 energy savings that the EU would otherwise
  use by 2020
• Efficiency campaigns (including buildings)
• Financial instruments and mechanisms to stimulate
  investments
• Renewed effort for transport
• An EU-wide  white certificates  trading system
• Better information in energy performance in
  different appliances and equipments and minimum
  performance standards
• - the adoption of a long term road-map for
  renewable energy sources including
• Renewed effort to meet existing targets
• Consideration of which target or objectives
  beyond 2010 are necessary
• A new community directive on heating and cooling
• A plan to stabilize and gradually reduce the
  EUs dependence on imported oil
• Initiatives to bring clean and renewable energy
  sources closer to markets

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Innovation

• A strategic energy technology plan making best
  use of Europes resources and building on
  European technology platforms and on joint
  technology initiatives or undertakings
• This will be presented soon to the European
  Parliament and to the Council for endorsement

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A common external energy policy

• In order to react to
• the challenges of high and volatile energy prices
• the increased import dependency
• the growing global energy demand and global
  energy warming
• Therefore the Commission proposes to
• Identify European priorities in construction of
  new infrastructure for securing energy supplies
  to the EU
• Develop a pan-European Energy Community Treaty
• Enhance a new partnership with Russia
• Organize a new Community mechanism to enable
  rapid and coordinated reaction to emergency
  situations
• Better develop relations with major producers and
  consumers
• An international agreement on energy efficiency

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Conclusions

• Eurogas views are recognized in a number of
  points and business analysis referring to EUs
  energy dependency and to EUs need to continue
  dialogue with producing countries.

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• Eurogas will contribute to both internal and
  external aspects of this Green Paper.

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Energy mix

• The EU needs a wide debate on different energy
  sources, for combating climate change and to
  ensure that overall the EUs energy mix
  contributes to security of supply,
  competitiveness and sustainable development.

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Climate change

• The Commission will possibly propose to the
  Council and the Parliament
• - a clear goal to prioritize energy efficiency
  20 energy savings that the EU would otherwise
  use by 2020
• Efficiency campaigns (including buildings)
• Financial instruments and mechanisms to stimulate
  investments
• Renewed effort for transport
• An EU-wide  white certificates  trading system
• Better information in energy performance in
  different appliances and equipments and minimum
  performance standards
• - the adoption of a long term road-map for
  renewable energy sources including
• Renewed effort to meet existing targets
• Consideration of which target or objectives
  beyond 2010 are necessary
• A new community directive on heating and cooling
• A plan to stabilize and gradually reduce the
  EUs dependence on imported oil
• Initiatives to bring clean and renewable energy
  sources closer to markets

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Innovation

• A strategic energy technology plan making best
  use of Europes resources and building on
  European technology platforms and on joint
  technology initiatives or undertakings
• This will be presented soon to the European
  Parliament and to the Council for endorsement

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A common external energy policy

• In order to react to
• the challenges of high and volatile energy prices
• the increased import dependency
• the growing global energy demand and global
  energy warming
• Therefore the Commission proposes to
• Identify European priorities in construction of
  new infrastructure for securing energy supplies
  to the EU
• Develop a pan-European Energy Community Treaty
• Enhance a new partnership with Russia
• Organize a new Community mechanism to enable
  rapid and coordinated reaction to emergency
  situations
• Better develop relations with major producers and
  consumers
• An international agreement on energy efficiency

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OTHER KEY DEVELOPMENTS

• The high level group on competitiveness
• Objectives
• Structure, ad hoc groups (Sherpas, HLG)
• Follow-up
• The competition sector enquiry
• Objectives
• State of affairs

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OTHER KEY DEVELOPMENTS

• The progress report on the single market
• Key issues
• State of affairs
• The external energy policy
• Incl EU-Russia delegate

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Conclusions

• Eurogas views are recognized in a number of
  points and business analysis referring to EUs
  energy dependency and to EUs need to continue
  dialogue with producing countries.
• Eurogas will contribute to both internal and
  external aspects of this Green Paper.