International Gas Union (IGU)

Introducing the 2006 – 2009 Triennium

Towards the 24th World Gas ConferenceBuenos Aires, Argentina, 19-23 October 2009

Status Report as at 18 January 2006

RegulationMarket Drivers

E&PStorage

T&DUtilisation

LNGR&D

2006-2009 Triennial Work Programme Concept

The Global Energy Challenge: Reviewing the Strategies for Natural Gas

Retrospective/Prospective focus of the gas industry’s experiences and challenges

Role of the WorldGas Industry

Sustainability:

Global Learnings

Outlookto 2030

Global Energy Needs and Prospects

Oil Prices & Geopolitical Constraints

Regulatory FrameworkMarket Growth vs. Supply AlternativesTechnologyEnvironmental ImpactCost Effectiveness

IGU: 2006 – 2009 Triennium

President

CC Secretary

CC Vice Chairman

Roberto BrandtArgentina

Ernesto Lopez AnadónArgentina

Andres Kidd Argentina

WOC 2 Storage

VladimirOnderka

Czech Republic

WOC 3Transmission

HelgeWolf

Germany

TFR&D

MarcFloretteFrance

PGC CDeveloping

Markets

Mohd. FaridAmin

Malaysia

CC Chairman

Secretary GeneralPeter Storm Denmark

Authorities & Technical Team

PGC BStrategy, Economy

& Regulation

Pedro Moraleda

Spain

PGC DLNG

SeichiUchinoJapan

WOC 4Distribution

JeremyBending

UK

PGC ASustainable

Development

Knut BarlandNorway

WOC 1 Exploration &

Production

VladimirYakushev

Russia

WOC 5Utilization

JeanSchweitzer Denmark

Vice President Datuk Rahim HashimMalaysia

Ho Sook WahMalaysia

IGU: 2006 – 2009 Triennium

Task ForceGas MarketIntegration

Jorge Doumanian Argentina

International Gas Union (IGU)

WOC4 2006 – 2009

CHAIRMAN – JEREMY BENDING, UKVICE CHAIRMAN – ALESSANDRO SORESINA, ITALY

SECRETARY ROBERT THOMAS, UK

WOC4: Topics ranked by members• Materials

• 3rd Party Damage

• Leakage Survey

• Leakage Reduction

• Leakage Repair

• Risk-based Asset Management

• Data Capture

• Pipe Replacement

• Smart Metering

• Remote Monitoring

Also proposed:

• Odorisation

• Biogas Use

• Energy Measurement

• Regulatory KPIs

• Risk assessments for planning processes

• Managing Rights of Way

IGU: 2006 – 2009 TWP Preparation

WOC4: Focal Themes Proposal(in suggested order of priority)

IGU: 2006 – 2009 TWP Preparation

Study Group Title/Subject Brief Description

WOC4.1 Risk-based Asset Management

Use of hazard & consequence models to prioritise maintenance & replacement

WOC4.2 Leakage Reduction Methods for measurement, reduction & repair of distribution leakage

WOC4.3 3rd Party Damage Practices for avoidance of interference damage by other excavators

WOC4.4 Leakage Survey Leakage survey equipment, practices and application of findings

WOC4.5 Data Capture Systems used to capture, record and retrieve asset data.

WOC4: Distribution

IGU: 2006 – 2009 TWP Preparation

Study Group

Topic Strat.

Guid.

Possible interactio

n with:

SG 4.1 Review of asset management strategies & practices

2 WOC3

PGCA

SG 4.2 Review of leakage reduction strategies & practices

2 PGCA

TF R&D

SG 4.3 Development of best practices for the prevention of third party damage to distribution assets

2 WOC3

Study Group 4.1.Review of Asset Management strategies and practices • The study will review the processes and methodologies used to develop strategies

for operating, maintaining and replacing gas distribution networks. This will build on the Distribution Integrity study from the previous triennium. The study will recognize the influence of differing regulatory frameworks both in defining local good practice and assessing the applicability of “best” international practices.

OBJECTIVES AND EXPECTED RESULTS• Evaluate and make recommendations in the following areas:

– The definition of distribution integrity performance measures;

– The use of available information systems, data and the management of data quality;

– The availability and applicability of cost/benefit calculations;

– The influence of national and international technical standards;

– The influence of economic regulation and competitive markets;

– The range of approaches within legal frameworks; prescriptive vs risk-based.

– Reactive > Time-based > Condition > Risk-based prioritisation.

Study Group 4.2

Review of Leakage Reduction strategies & practices.• The study will determine the process necessary for the evaluation and

determination of leading practices used in the industry for the management of leakage from gas distribution systems. These leading practices will be based on reviewing commonly defined metrics of operational performance. Methane is a significant greenhouse gas and leakage is perceived to contribute to depletion of the ozone layer. Leakage also presents safety, economic and operational challenges to distribution operators.

• OBJECTIVES AND EXPECTED RESULTS• The study will provide:

– A review of leakage management strategies across member countries;

– Assessment of the ability to quantify leakage from distribution systems;

– Specific focus on the effectiveness of leakage survey methodologies;

– Identification of best practices in leakage management systems;

– Review of existing and emerging technologies for leakage control.

Study Group 4.3.

Development of best practices for the prevention of third party interference damage to distribution assets.This is a study to evaluate how each of the IGU member countries approach the management of third party interference damage to gas distribution systems. This emerged as a major integrity issue from the 2003-2006 triennium study.

It is important to determine the various approaches, funding levels, legal requirements and collaborative efforts currently in place.

 

• OBJECTIVES AND EXPECTED RESULTSThe study will provide a review of damage control activities associated with gas distribution systems including:

– Provision of plant records & information to enable location;– Legal/regulatory requirements driving plant location;– Measures of effectiveness of plant protection systems;– Resourcing requirements for site attendance where provided;– Review of existing and emerging technologies for damage control;– Identification of best practices in plant and damage location systems across all

utilities.

Topic Summary – Draft – Not for publication

IGU: 2006 – 2009 TWP Preparation

Group Study Group 1 Study Group 2 Study Group 3

E&P Conventional resources

Unconventional resources

U’grd Storage UGS database UGS improved technologies Intelligent UGS

Transmission Regulation & safety New technologies Contribution to SD

Distribution Asset management Leakage reduction 3rd party damage

Utilisation Industrial Domestic & commercial Transport (NGV)

+ Gas utilisation efficiency indicators

Sustainability Guidelines of Sustainable Development

G’hse gas red’n case studies

Regulation Supply & demand

+Outlook to 2030

Price formation & trends

+ Outlook to 2030

Regulation & industry structure

Develop Mkts SW Asia South America Eastern Europe

LNG Quality & inter-changeability

LNG contracting flexibility Remote & offshore LNG facilities

TF R&D Role and structure of R&D within the gas industry /IGRC

TF GMI (Gas Market Integration) tba

International Gas Union (IGU)

International Gas Union WOC4 2006 – 2009

First meeting – London. Draft programme

Tuesday-Friday, 19-22 September 2006 Tuesday 19 Guests arrive – Charing Cross Thistle Hotel  Early evening trip on the BA London Eye  Buffet supper at the Hotel   Wednesday 20 Meetings at the Hotel during the day  Partners’ tour - to be confirmed  Evening trip by coach to Tower Bridge for dinner  Return to Hotel by coach Thursday 21 Meetings at the Hotel during the day  Partners’ tour - to be confirmed  Evening dinner cruise on the River Thames

Friday 22 Technical tour – Distribution Challenges in London.  Lunch - venue to be confirmed

North America

7.31

Russia & FSU

57.2

5.1

Production

Net gas importers Net gas Exporters

Western Europe

Middle East

71.7

13.5

Asia Pacific

Africa

13.8

Units: BCM

South/Central America

7.19

Consumption

Source of Data : BP Stats 2005 & IEO 2005

Gas Reserves, trillion cubic metres

Overview of Global Gas Reserves, Supply and Demand