Transcript Document

Role of storage for SoS /
Necessary signals for investing in
new storage
Klaus-Dieter Barbknecht
GSE President
GIE Annual Conference 2006, Bratislava
28-29 September 2006
28-29 September 2006
GIE Annual Conference 2006, Bratislava
1
Storage
= Solid as a rock?
28-29 September 2006
GIE Annual Conference 2006, Bratislava
2
Market demand for flexibility
 The inventories of storage are already filled in some
European countries.
 An expression of the new gas world?
Source: The Heren Report 2006
28-29 September 2006
GIE Annual Conference 2006, Bratislava
4
Who is going to satisfy
the European import demand?
Import
EU 25 [Mrd. M³/a]
2004
2015
~ 700
~ 500
Norway
14 %
15-20 %
50 %
50 %
Import
75 %
Own
production 25 %
2004
2015
Russia/
Caspian Region
22 %
30-40 %
Others (LNG)
3%
10-15 %
Source: Wingas
28-29 September 2006
North Africa
11 %
10-15 %
GIE Annual Conference 2006, Bratislava
5
Role of Storage
Balancing seasonal variations in consumption
Covering demand peaks
Securing gas supply in case of interferences in production,
transport or supply
Enhancing cost effectiveness of gas transport
Seasonal modulation and security of supply (technical availability)
seconded
by products to support the new market
a part of the flexibility market
28-29 September 2006
= SECURITY OF SUPPLY
GIE Annual Conference 2006, Bratislava
6
Storage volumes: future
Some examples of current storage projects in Europe:
UK:
Humbley Grove (Star Energy): since 2005 a capacity 315 mcm
Aldbrough (Statoil/Scottish, Southern Energy): 420 mcm by 2009
Welton (Star Energy): 435 mcm by 2008/2009
Germany:
Rüdersdorf (EWE): 300 mcm
Bernburg (VNG): 390 mcm
Italy:
Alfonsine (Agip): 1.300 mcm
Conegliano (Edison): 190 mcm
Netherlands:
Alkmaar PGI (BP): 500-750 mcm
28-29 September 2006
GIE Annual Conference 2006, Bratislava
7
Labyrinth? Where are we now?
28-29 September 2006
GIE Annual Conference 2006, Bratislava
8
Investment
 Netherless massive investments are needed for
safe and reliable storage facilities in order to
guarantee a secure supply of gas
 Long-term financing of investment has to be assured
 Framework conditions as an precondition
for growth and investments:
clear
stable
predictable
28-29 September 2006
GIE Annual Conference 2006, Bratislava
9
Emergency Gas Stocks
Development of emergency gas stocks would
lead to :
– undermining investments in existing and
future storage
– huge investments that could be used to
achieve more efficiently SoS
– substantial repercussions on gas prices
28-29 September 2006
GIE Annual Conference 2006, Bratislava
11
Conclusion: Necessary Signals for
investing in new storage
 clear, predictable and reliable framework
 decision about the option to regulate the storage
 if regulation: need for allowing storage activities
to be in line with market expectations, no threat to
security of storage infrastructure due to low tariffs
28-29 September 2006
GIE Annual Conference 2006, Bratislava
12
Outlook: Madrid XII
ERGEG will present the last monitoring for implementation
the Guidelines for Good Practice for Storage Operators
(GGPSSO)
=
recommendation to the European Commission
regulation
of the storage
28-29 September 2006
?
voluntary
guidlines
GIE Annual Conference 2006, Bratislava
13