Update on GSE Activities Klaus-Dieter Barbknecht GSE President GIE General Assembly Madrid 21...

Update on GSE Activities

Klaus-Dieter Barbknecht GSE President

GIE General Assembly

Madrid21 November 2007

21 November 2007GIE General Assembly- The spoken word shall prevail -

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GIE members agreed on a voluntary basis to publish

storage data

The initiative goes beyond the requirements by the

GGPSSO and Gas Directive

Protection of commercially sensitive information

aggregated form to guarantee that commercially sensitive information is not disclosed

Aggregated gas storage inventory

Provision of information which the market needs to operate

efficiently and effectively


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…preparing a list of storage sites that affect the trading

at European hubs

…reviewing the level of appropriate aggregation

…contributing to the EC Study on natural gas storage

GSE Transparency Work plan

…facilitating the release of both operational information about

the use of storage sites & available capacity for purchase

…reviewing the potential for publication of aggregated inflows and off-takes & gas in store levels

per trading zone


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Gas Storage Inventory: Aggregation by hubs


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GSE Storage Investment database

…is based on publicly available information

The data reflect the most probable expectation at the moment.

The published data shall not be understood as any company’s ultimate commitment to execute the project.

Reviewing & updating every 6 months or by request.


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§ §§

Impact on storage

• …increasing transparency

3rd EU Energy Package

• …making the GGPSSO legally binding

„To make the guidelines legally binding, the Regulation will be extended to define how storage system operators shall offer third party access services, how they shall allocate capacity and manage congestion.“

§GGPSSO§

§

• …tightening the regulatory framework for new investments in the gas infrastructure

• …amending Regulation (EC) 1775/2005 (gas)


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• …proposes legal and functional unbundling for gas storage

• …analyses 4 options for strategic storage:– Impose mandatory strategic stocks on the companies– Improve the existing mechanism– Create regional solidarity mechanisms between Member States– Impose minimum standards on commercial stocks for improving SoS

• …calls for strengthening powers of national regulatory authorities and…

• …enhanced co-operation of EU energy regulators

3rd EU Energy PackageImpact on storage

• …launches a „EU Study on Natural Gas storage“


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…is of the opinionthat binding regulation,

if implemented, must remain within the original scope

of the GGPSSO

…appeals to avoidunnecessary

administrative & regulatoryburdens

…strives for the realization of an optimally functioning, competitive

internal gas market

…is committed to preserve and promote

a clear and stable investment climate

…reaffirms its commitment to the full

implementation of the GGPSSO

…considers the GGPSSO to be a

guarantee for equal treatment of storage users & positive

investment signals

GSE position


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CONGESTION MANAGEMENT

SECONDARY MARKET

INVESTMENT

TRANSPARENCY

Website on weekly storage inventory & movement by traded hubs

Contributing to the EC study on natural gas storage

Publication of storage project data

GSE initiatives

Investment workshop on storage projects in Europe

CONFIDENTIALITY

Creation of effective, non-discriminatory processes

Improvement of secondary market services & tools

Endorse equal treatment of all storage users


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Thank you for your attention!


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Back up


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GSE Storage Investment database (2)


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Implementation of GGPSSO

Implementation of GGPSSO

2nd Deadline for the implementation

of the GGPSSO

2nd Deadline for the implementation

of the GGPSSO

2005 ERGEG monitoring report

on GGPSSO implementation

2005 ERGEG monitoring report

on GGPSSO implementation

2nd ERGEG Monitoring:Questionnaires to

SSO, storage users, NRA

2nd ERGEG Monitoring:Questionnaires to

SSO, storage users, NRA

ERGEG 2006 final monitoring report on the

implementationof the GGPSSO

ERGEG 2006 final monitoring report on the

implementationof the GGPSSO

Madrid Joint Working

Group

Madrid Joint Working

Group

13th Madrid Forum

13th Madrid Forum

2 0 0 5

2 0 0 6

2 0 0 7

1st Apr

Dec

Feb

Oct

Sep

Dec

NovApr

Feb/Mar

12th Madrid Forum

12th Madrid Forum

3rd Energy Package by the European

Commission

3rd Energy Package by the European

Commission

GGPSSO - Monitoring


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Voluntary guidelines or binding legislation?

recommendation to the European Commission:binding legislation for access to storage

Regulation of storage

Presentation of the 2006 final ERGEG Monitoring report on the implementation of the GGPSSO

3rd Energy Package19th September 2007

continuingvoluntary

Implementation at risk?


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Storage volumes – present

Source: IGU 2006

The overall working gas volume in the EU is at ~80 bcm.

Storage volumes

need to be expanded by 60 bcm until 2025!


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Storage projects – GSE investment database –

30 bcm additional working gas capacity until 2015 (+40% with respect to present capacity)

more than 60% of new capacity in countries from where derive 80% of EU-27 gas

demand

more than 70% of new capacity deriving from new storage facilities

Three digits percentage increases in:

Spain: substantial increase in gas demand and total dependency on imports

UK: shift in supply patterns, trading opportunities

Bulgaria: increasing role for Russian transit gas

Austria: commercial developments for bordering countries (e.g. Germany)

GSE commitments: continue working with all stakeholders to fostering a “proper” investment climate for

making all projects real and available for market needs on time Publication of a European storage investment database on the GIE web site to

provide a synthetic and updated status on projects (based on public information)

Update on GSE Activities Klaus-Dieter Barbknecht GSE President GIE General Assembly Madrid 21...

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