Transcript Holland as a European gas roundabout

Groningen, 16/07/2015
Natural gas infrastructure in Europe
Experiences of an independent system operator
Helmer Horlings
Groningen, 16/07/2015
Who we are…
N.V. Nederlandse Gasunie
From an integrated natural gas company to infrastructure provider
Shareholders
Prior to 1 July 2005
Integrated company
Shareholders
From 1 July 2005
Two companies
N.V. Nederlandse
Gasunie
100%
Infrastructure
Gasunie
25%
25%
Ministry of
Finance
50%
GasTerra
25%
25%
50%
Ministry of
Economic Affairs
Trade
Gasunie’s natural gas transport grid
From 1 July 2008
 Total length 15,000 km
 Gas qualities: H-, L- and G-gas
 Transported volumes: 125 BCM in 2007
 18 compressor stations
 1 LNG peak shaver
Groningen, 16/07/2015
Natural gas in the European Union…
Natural gas imports of EU-27 to grow substantially
240 BCM on imported gas to be added in the period 2007-2020
Natural gas supply situation in 2007
2020
Projected
Imports
imports
amounted
amountsome
more290
than
BCM
530 BCM
Annual volumes in BCM
Indigenous production
Imports from outside EU
120
90
120
210
200
110
155
50
20
30
Gas supply security
Markets’ preparedness for extreme conditions
Securing natural gas deliveries also under
more extreme than average conditions
 Colder and longer
Policy choices
than average winters
Broad discussion
 Technical failure
Questions
 Terrorism
 1-in-10, 1-in-20 or 1-in-50 winter?
 30, 60 or 90 days with interruption of largest
 Commercial disputes
 Political tensions
supply?
 National measures or a European solution?
 Who is responsible for deliveries at extreme
conditions?
…
 Natural disasters
Relative comparison of gas security
Important gas markets of EU-27
Anno 2007
A large spread
on a national level
National means to
deal with gas crisis
Plentiful
Absent
Low
MODEL INPUT
• Energy supply mix
• Natural gas diversity
• Natural gas storage
With an increased interconnectivity
EU member states could all approach this level
Investment requirement
€ 20 to 30 billion
Exposure to
natural gas supply shocks
High
Gas security of the EU
Maintaining current gas security level requires investments in new storages
Anno 2020
National means to
deal with gas crisis
Plentiful
Absent
Low
Investment requirement
+120 BCM of storage
above current level
€ 60 to 90 billion
Investment requirement
+70 BCM of storage
2007
above current level
€ 35 to 50 billion
If no additional large-scale
storage constructed
Exposure to
natural gas supply shocks
High
How to tackle extreme conditions?
To what extent are market players willing to invest?
Should the governments intervene or participate in projects?
By 2020, some € 120 billion need to be
invested in EU infrastructure to assure gas
security close to its current level
Market
 Let market players take all responsibility
Measures assuring gas security
 Long distance pipelines
 LNG receiving terminals
 Government to set proper boundary conditions
?
 Interconnection pipelines
 Storages for normal conditions
How to assure adequate investments,
including extreme conditions?
 Demand side management
 Storages for extreme conditions
Both supply & demand
?
Governments & market
 Let governments take a large share of
responsibility through direct participation in
strategic projects
Groningen, 16/07/2015
Gasunie’s new activities…
Gasunie’s business philosophy
Independent gas infrastructure business creates a platform for market openness
Open access philosophy
Aggregation role
LNG re-gasification
Gas storage
Gas transport
Gasunie invests intensely into infrastructure in Northwest-Europe
Progress between 2005 and present
Gas storage
Zuidwending
BBL
Nord Stream
LNG
Gate
Gasunie
Deutschland
North-South expansion
Integrated Open Season