3-4 november 2005gie annual conference 2005, athens1 the increasing importance of storage...
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3-4 November 2005
GIE Annual Conference 2005, Athens 1
The increasing importance of storage
Klaus-Dieter Barbknecht
GSE President
GIE Annual Conference 2005, Athens 3-4 November 2005
3-4 November 2005
GIE Annual Conference 2005, Athens 2
StorageNew Economy
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2. Why storage?
Balancing seasonal variations
in consumption
Securing gas supply in case of
interferences in production, transport or
supply
Covering demand peaks
Enhancing cost effectiveness of gas
transport
Traditional roles of storages as important guarantor of security of
supply
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Storage volumes
Overall working gas volume in Western Europe:57 bcm
Storage volumes in Europe need to expand by 3 bcm per year until 2025!
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Shrinking EU gas production
0
20
40
60
80
100
120
1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2015 2020 2025 2030
bc
m
Niederlande
Frankreich
Deutschland
Italien
UK
Source: Global Insight, 2004.
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Growing gas demand in EU-25
0
100
200
300
400
500
600
700
1990 1995 2000 2005 2010 2015 2020 2025 2030
Mto
e
Source: European Commission, 2004.
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Longer transportation routesBarents
SeaYamal
850 km
4800 km
1300
km
North Sea
NorwegianSea
> 5000 km
Turkmenistan> 4000 km
Iran
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Future role for storage
Seasonal modulation and security of
supply (technical availability)
seconded by products to support the
new market
Storage is and will be part of the
flexibility market
Security of Supply remains the most
important target
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Increasing demand for storage in order to:- Balance declining production swing (e.g. need for
strategic storage in UK)
- Meet growing demand of natural gas (e.g. in East and Southern Europe)
- Make use of market flexibilities (e.g. price arbitrage)
- Overcome delivery bottlenecks through long distance transports (e.g. producers entry to European market like Gazprom)
Need for allowing storage activities to be in line with market expectations
Need for regulative stability and positive investment signals
Conclusions
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Epilogue: Outcome Madrid X
Progress of Storage System Operators recognized
Overall compliance in the field of transparency and secondary market edentified as “construction sites”:
- Publication of Operational Datas vs. Confidentiality Requirements
- Bulletin boards not yet established with all SSOs
- Limited secondary trade of unbundled services – solutions in sight
GSE Workshop on this issues : Nov. 16. Brussels