pipeline technology conference 2011 · import dependency of europe remains; tendency: increasing...
TRANSCRIPT
Pipeline Technology Conference 2011
Perspective on the Development of European Gas Infrastructure
Hannover 4th April 2011; Oliver Giese
2
Contents
1. Activities of E.ON
2. Gas Reserves and Gas Demand
3. European Natural Gas Transmission System
4. Nord Stream as an example of a successful Pipeline Project
5. Perspective on the Development of European Gas Infrastructure -
Conclusion
3
1. Our Group Units accompany our activities along
the whole value chain
Distribution Trading Retail/Sales
Long term contracts
Exploration &
Production
LNG
Storage
Transmission
4
1. Corporate structure of E.ON Ruhrgas
E.ON AG
Global Gas
E.ON Ruhrgas AG
Portfoliomanagement
E & P Exploration &
Production
ISB Infrastructure
Shareholdings
E.ON Gas Storage
Open Grid Europe
LTC Long Term Contracts
Central Functions
LNG Liquefied
Natural Gas
Sales
Ga
s T
echn
olo
gy &
En
erg
y S
yste
ms
Co
mp
ete
nce
Ce
ntr
e
5
Gas Mobility
MV/LV-Grid
MP/LP-Grid
Generation / Supply Transport Storage Distribution End-use
UGS
LNG
Pipeline
RES power
conv. power
HV-Grid
E&P
LTC
Carbon Sourcing & Technical Cooperation
H2 & CO2 Transport
Power Storage
Smart Gas Grid / Smart Meter
Distributed Generation
Gas Metering and Quality Control
Gas S
yste
m
Po
we
r S
ys
tem
Carbon Sourcing
Smart Meter
Efficiency & Buildings
Gas & Renewables
1. Topics of Competence Centre are settled along the whole Value Chain
Gas Technology & Energy Systems
Competence Centre
6
Contents
1. Activities of E.ON
2. Gas Reserves and Gas Demand
3. European Natural Gas Transmission System
4. Nord Stream as an example of a successful Pipeline Project
5. Perspective on the Development of European Gas Infrastructure -
Conclusion
7
2. Perspectives of Gas Supply for Europe (EU-27)
*) i.e., Egypt, Qatar, Nigeria
Basis for EU imports: Contracted quantities of gas, expected extensions of contracts and additional quantities for EU-market
Import dependency of Europe remains;
tendency: increasing
Interdependencies between previous
regional submarkets all over the world
will further increase
Competition regarding resources on the
international markets will grow
Number of important producers outside
EU will remain limited and their position
will stay strong
500
250
Projects in the future (dependent on trend of demand)
EU-imports
EU own production
bcm
2009 2015 2020 2030
ALG
NOR
RUS
other*
North America
Europe
South America
Africa
Middle
East
C.I.S./
Central
Europe
Far
East
proved recoverable natural gas reserves: 177.0 trillion m³
1 m³ = 11.5 kWh
1 January 2009
Source: Oil & Gas Journal
2. World Gas Reserves
8.7
7.6
4.8
14.0 12.2
73.3
56.4
8
9
Contents
1. Activities of E.ON
2. Gas Reserves and Gas Demand
3. European Natural Gas Transmission System
4. Nord Stream as an example of a successful Pipeline Project
5. Perspective on the Development of European Gas Infrastructure -
Conclusion
3. Pipeline Gas imports are actually transited via 3 Main Corridors to the European Market; 4th Corridor is needed
from Russia
from the North Sea (Norway, UK)
from North Africa (Algeria / Libya)
from Central Asia / Middle East
20%
21%
23%
36%
10
11
TAP is a commercially & technically viable gas pipeline project linking Europe to new gas sources
TAP contributes to increased security of energy supply in Europe
TAP meets the needs of producers, shippers and buyers
3. Connecting Europe with new gas reserves via TAP
Gas reserves in trillion
m3
12
3. TAP - the shortest and most cost effective way to Europe
TAP is a cost effective option (both CAPEX and OPEX)
Uses existing infrastructure and therefore can flexibly developed in a step by step approval
SD II gas to fill TAP’s initial capacity of 10 bcm per year
No other volumes required for the pipeline at this stage
13
Contents
1. Activities of E.ON
2. Gas Reserves and Gas Demand
3. European Natural Gas Transmission System
4. Nord Stream as an example of a successful Pipeline Project
5. Perspective on the Development of European Gas Infrastructure -
Conclusion
14
4. The Nord Stream Project
Nord Stream
Two parallel offshore pipelines of 1,224 km (transport capacity 55 bcm per year)
A direct and fixed link between Russia’s vast proven gas reserves and the European Union
An additional route complementing Existing network and other planned pipelines
Infrastructure project ‘of European interest’ within the framework of the EU’s TEN-E guidelines
51% 15.5% 9% 15.5% 9%
since 10 June 2008 since 1 July 2010
2011-2012 2011 2012 2010-2011 1997-1999 2009 2006-2008 2005 - 2009
Feasibility
Study
Pipeline
design
Laying
Line 1
Commissioning
Line 1
Laying
Line 2 Applications &
Permitting EIA
Commissioning
Line 2
2010
Financing
Phase I & II
15
4. Over 1,100 km of the first pipeline laid until date
KP1195
KP675
KP297
KP7.5
KP350
2010 April
May
June
July
Aug.
Sep.
Oct.
Nov.
Dec.
2011 Jan.
Feb.
March
April
Casto
ro S
ei (C
6)
So
litaire
Casto
ro D
ieci (C
10)
* KP = Kilometre Point
KP451
Location Castoro 6: ~KP 800 (125 km open)
As of 29. March 2011
16
4. Allseas' Pipelay Capabilities under Arctic Conditions
17
OPAL (Greifswald – Olbernhau)
478 km / DN 1400 / PN 100
Compressor Station Radeland 2 x 33,4 MW 1 x 32,0 MW
Construction Progress: 99%
Planned Completion: October 2011
NEL (Greifswald – Rehden)
440 km / DN 1400 / PN 100
Construction Start: March 2011
Planned Completion: November 2012
Olbernha
u
4. Nord Stream’s onshore connections to the European network – OPAL & NEL
enable to distribute new Volumes into the European Gas Market
Greifswal
d
OPA
L
Radelan
d
Rehde
n
NEL
17
18
Contents
1. Activities of E.ON
2. Gas Reserves and Gas Demand
3. European Natural Gas Transmission System
4. Nord Stream as an example of a successful Pipeline Project
5. Perspective on the Development of European Gas Infrastructure -
Conclusion
19
5. E.ON welcomes and endorses the approaches expressed by the
EU COM on Energy Infrastructure Priorities for 2020
Improving internal market in Europe
regarding cross-border interconnec-
tions, integration of isolated regions
and competitiveness
2020 goals and reduction of
greenhouse gas emissions until 2050
can only be achieved with sufficient
and adequate grid infrastructure
Security of energy supply is a key
element of European Energy policy
leading to investment obligations in
infrastructure
Completely new infrastructure
policy needed
Energy Infrastructure Priorities for 2020 +
Southern Gas
Corridor
North-South Gas
Corridor in Western
Europe
BEMIP Gas
North-South Gas
Interconnections
19
20
5. EU COM should support important infrastructure projects
primarily by providing an appropriate regulatory framework E.ON’s Position on Energy Infrastructure Priorities for 2020 +
Priority
corridors
Selection of
important
projects
Authorization
procedures
Financing
The identification and development of important infrastructure
priority areas, especially concerning new import routes for gas should
be a joint project of energy companies, Member States and the EU COM.
The selection of projects that are to receive preferential treatment
regarding facilitated processes should involve a dynamic selection
procedure based on transparent criteria and markets’ requirements.
EU COM could potentially facilitate the sharing of best practice
between Member States at national and local level and help to ensure a
framework for co-operation between the relevant authorities.
Current capital market-based system for financing grid investments
should be kept. Existing national regulatory frameworks have to be
adapted to allow an appropriate return on investment.
21
5. Transportation tariffs have to provide security for investors
taking over risks for major infrastructure investments
Project joint ventures of non-TSO project sponsors are
an efficient concept for the realization of multinational
import projects parallel to TSO-driven projects
High investment-costs are necessary for the
implementation of major transmission systems
Return on capital employed need to correspond with
investor objectives
Project risks need to be considered adequately
Long-term transportation contracts are backbone for
investments
For transmission systems with strong transit character an
exemption from regulation is important, i.e. tarification
will be defined by investors
E.ON’ s requirements for infrastructure projects
21
Thank you for your attention !
Oliver Giese
Senior Vice President Infrastructure Interests, E.ON
Ruhrgas AG