Gas Centre Task Force on Gas Market and Regulations

Brussels, 2 December 2015

Margot A. Loudon

Deputy Secretary General

Views on the internal market and security of supply issues

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Policy framework under scrutiny – different drivers

Security of supply concerns – Russia/Ukraine and aftermath. Stress tests carried out in 2014.

Energy market design – its evolution to help market cope with RES and incentivise DSR.

Climate change imperatives.

Internal Market implementation issues.

Energy Union concept is an all-embracing dossier – intended to improve coherence.

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Different markets – different supply diversities

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Different markets – different supply diversities

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Member States with well-functioning markets also have secure markets.

Regional market-based cooperation supports security of supply.

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Too many Member States (also neighbouring Contracting Parties of the Energy Community) have not enough diversification of supplies. Faster implementation of the Infrastructure Directive

Too many Member States lack a functioning market. Enforcement of the Third Energy Package

There is not enough joined up thinking between electricity and gas markets. Develop a 2030 framework, that takes on board the future

opportunities of new market design, across the energy chain

Principal messages of Eurogas, underlying responses to consultations

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A well-functioning market with unimpeded trade across borders offers the best response to security of supply concerns. Continuing improvements necessary, including cross-border investments.

The strengths of the market can counter the negotiating power of external producers through companies’ commercial strategies and market activities. Companies should be able to source diversified supplies on a cost-efficient basis. Energy independence should not be a goal in itself.

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The LNG market is part of a wider internal gas market, and the global market should be respected.

Infrastructure should essentially be market-driven – ensure gas

can be moved around Europe from terminals. National interventions in the market e.g. on storage should be

assessed against pre-determined criteria.

Specifically on LNG and Storage – input for January 2016 strategy

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Across Europe,

Consumers have more choices of energy suppliers.

Cross-border trade in gas within Europe has increased – hub prices are converging.

Gas pipelines are used more efficiently – effective congestion management.

More players on the market.

Investment in gas infrastructure, pipelines, LNG, storage is happening despite a depressed demand.

Broad evaluation of the market - progress

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Eurogas identifies a number of necessary improvements to the market. Supports implementation of the Gas Target Model (GTM) to

facilitate more market.

Looks forward to participating in the planned approach of ACER/ENTSOG to improve Code implementation.

Calls for an holistic approach in market design along the energy chain, recognizing that gas is essential to a sustainable and affordable energy market.

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Remaining problems in the Internal Market can be addressed by targeted actions in wholesale and retail markets. Improving the market will improve supply security.

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Thank you for your attention!

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Contact details

Av. de Cortenbergh 172

1000 Brussels

BELGIUM

Phone:

+32 2 894 48 48

eurogas@eurogas.org

www.eurogas.org