the status of underground natural gas storage in …...the status of underground natural gas storage...
TRANSCRIPT
![Page 1: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/1.jpg)
The Status of Underground Natural Gas Storage in Europe------------
and its Impact on Energy Security
Jean-Marc LeroyPresident, GSE CEO, Storengy
UNECE “Energy Week”, Committee on Sustainable Energ yGenève, 24 th November 2010
![Page 2: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/2.jpg)
2
GSE represents : � 33 Storage System Operators� 110 storage sites in 16 countries � ≈ 85% of Europe’s technical
storage capacity.
![Page 3: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/3.jpg)
3
Agenda
1. The key role of natural gas storage in security o f supply
2. Gas storage development perspectives
3. Risks and incentives
4. Conclusions
![Page 4: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/4.jpg)
4
1. The key role of natural gas storage
in security of supply
![Page 5: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/5.jpg)
5
Security of supply : Security of supply : a a «« highhigh --visibilityvisibility »» topictopic
January 2009
January 2010
October 2010
Reduction in gas supply in %, January 2009
Regulation onSecurity of Gas
Supply
![Page 6: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/6.jpg)
6
Natural gas storage : Natural gas storage : A key role in the A key role in the European policyEuropean policy
sustainability
security of supply
The European energy policy
� Large proven reserves (conventional + unconventional )
� Large panel of routes and suppliers
� A storable energy
� A market-oriented storage industry which proved its efficiency through crisis
![Page 7: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/7.jpg)
7
Austria
Belgium, Portugal,Switzerland
Bulgaria
Hungary
Ireland
Italy
Netherlands
Poland
Romania
Slovakia
Spain
United-Kingdom
Danemark
Czech Republic
Estonia, Finland,Lithuania, Lux.
0%
10%
20%
30%
40%
50%
0% 20% 40% 60% 80% 100%
Imports / Demand (%)
Sto
rage
/ D
eman
d (%
)
EU-27Storage/Imports = 25% EU-27 2020e
EU-27 2030eGermany
France
Source: SG Equity Research / Eurogas / GSE 2008
Another way to look at Another way to look at storage in Europestorage in Europe
![Page 8: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/8.jpg)
8
2. Gas storage developmentperspectives
![Page 9: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/9.jpg)
9
1. Need for security of supply � Decline of local production
� Increase of import contracts & remoteness of sourcing
=> two major driverstwo major drivers
Sou
rce
: Ced
igaz
200
5
![Page 10: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/10.jpg)
10
2. Need for flexibility� Decline of local production
� estimated additional seasonal swing demand ≈ 14 Bcm in 2030
� Development of trading
� Exple : traded volumes on NCG
� Increase of CCGT
� Increase of wind power generation
� estimated additional peak swing demand ≈ 10 Bcm in 2020
=> two major driverstwo major drivers
Sou
rce
: E.O
N E
nerg
y T
radi
ng
![Page 11: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/11.jpg)
11
19,6
12,3
14
1,6
2,3
2,8
3,7
5,04,3
4,1
1,0
0,7
2,7
0,4
Spain
France
Belgium
UK
Netherlands
Germany
Poland
Latvia
Italy
Denmark
Czech R.
Slovakia
Austria
Croatia
Romania
Bulgaria
0,2
Portugal
Source: GSE 2009, CEDIGAZ 2009, IGU 2009
4,2
3,1
14,3
P
P
P
P
p
Storage volumesStorage volumesin Europein Europe
–– current situation current situation ––Hungary
0,6
Europe storage facilities : working gas volume in bcm
Total around 80 bcm
1,6
Turkey
![Page 12: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/12.jpg)
12
19,6
12,3
14
1,6
2,8
3,7
5,0
4,3
4,1
1,0
0,7
2,7
0,4
Spain
France
Belgium
UK
Netherlands
Germany
Poland
Latvia
Italy
Denmark
Czech R.
Slovakia
Austria
Croatia
Romania
Bulgaria
0,2
Portugal
Source: GSE 2009, CEDIGAZ 2009, IGU 2009
4,2
3,1
14,3
P
P
P
P
p
2,3
Storage Storage projectsprojectsin Europein Europe
Hungary
0,6around 70 bcm
0,2
Albania
3,2
0,1
2,4
0,1
Bosnia-H.
0,5
0,8
1,8
8,7
2,3
11
1
0,5
Lithuania4,5
1,7
2,2
5,8
Serbia
5,9
20
Pro
ject
in b
cm
Cu
rren
t in
bcm
12
1,6 1,5
Turkey
![Page 13: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/13.jpg)
13
• A worldwide oversupply situation � Economic crisis => fall of the demand (2009 : -3% / -4%)
� New GNL capacities (+50% from 2009 to 2013)
� Rise of non conventional gas
• Impact on the flexibility market � Spot prices < Long term oil indexed prices
� Squeeze of the seasonal spread
=> ……but short term uncertaintiesbut short term uncertainties
13
![Page 14: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/14.jpg)
14
3. Development :Risks & incentives
![Page 15: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/15.jpg)
15
� Stability of the regulation Stability of the regulation : a necessity for attracting funding
Regulatory instabilityRegulatory instability
(three directives in ten years !)
several dozen billion EUR to be invested in the next 20 years
RISK
Incentives
![Page 16: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/16.jpg)
16
GSE believes that :
- strategic storage is definitely damaging
- choice of access regime should be market-oriented
- negotiated TPA should be the preferred choice wherever market conditions allow : ⇒ best regime to facilitate investments⇒ best regime to foster commercial creativity and provide best response to the demand
Inappropriate regulatory frameworkInappropriate regulatory frameworkRISK
Incentives
![Page 17: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/17.jpg)
17
4. Conclusion
![Page 18: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/18.jpg)
18
� Transparency
� Market Orientation
� Dialogue
keywords
![Page 19: The Status of Underground Natural Gas Storage in …...The Status of Underground Natural Gas Storage in Europeand its Impact on Energy Security Jean-Marc Leroy President, GSE CEO,](https://reader030.vdocuments.net/reader030/viewer/2022040513/5e675380fc594749a80fbb7c/html5/thumbnails/19.jpg)
EuropeEurope ’’s etymology : s etymology : ““ the farthe far --seeing oneseeing one ””
www.gie.eu.www.gie.eu.