About GIE

avenue de Cortenbergh 100

Gas Infrastructure Europe

1000 BrusselsBelgium

F +32 2 209 05 01T +32 2 209 05 00

gie@gie.euwww.gie.eu

Images courtesy of Fluxys, ENGIE

Gas Transmission EuropeGas Storage Europe

sGas LNG Europe

n

GIE’s Policy Asks

The benefits of gas infrastructure for European ConsumersAchieving Europe’s Energy Climate Goals

Gas Infrastructure Europe (GIE) is the association representing the interests of European natural gas infrastructure operators active in natural gas transmission, gas storage and Liquefied Natural Gas (LNG) regasification. GIE is a trusted partner of European institutions, regulatory bodies and industry stakeholders. It is based in Brussels, the heart of European policymaking.

GIE currently represents 67 member companies from 24 countries. Its internal structure has three columns corresponding to the three types of infrastructure activities represented: Gas Transmission Europe (GTE), Gas Storage Europe (GSE) and Gas LNG Europe (GLE), who cooperate under the umbrella of GIE. This structure allows member companies to speak with one voice on gas infrastructure topics as well as to build positions on column-specific issues.

GIE’s vision is that by 2050, the gas infrastructure will be the backbone of the new innovative energy system, allowing European citizens to benefit from a secure, efficient and sustainable energy supply.

GIE asks for sustainable goals which support research and innovation and wide deployment in technologies such as biogas/biomethane or power to gas and gas for transport. This ensures Europe’s technological lead in decarbonisation solutions.

The EU should support the development of new environmentally-friendly technologies and accept GIE is a pro-active partner on the sustainable future of transmission networks.

Every market is different. GIE asks policy makers to consider local and regional challenges at the corresponding level and to recognize the differences in energy markets across Europe.

The EU needs flexible and integrated energy infrastructure. GIE asks the EU institutions to ensure a level playing field which encourages primarily market driven investments.

GIE asks the EU institutions to ensure a well-interconnected and integrated energy market based on a positive cost benefit analysis and full implementation of the existing legislation.

Clear, coherent and positive signals from EU policy makers regarding the role of gas in the future energy mix are an essential prerequisite for a sound investment climate in the gas sector.

An ambitiously reformed ETS should provide price signals for investments in low carbon technologies, including gas. The ETS should be the main policy instrument, and should extend to sectors that are currently not covered.

CO

2

Gas is an ideal partner for a variety of renewable energy sources as it provides the flexibility needed to compensate for the intermittency of electricity produced through solar or wind.

This flexibility will thus guarantee secure electricity to consumers. For gas to play its role a well-developed and meshed gas infrastructure network as well as storages and LNG terminals is required, so that gas can flow where it is valued the most. Today in large parts of Europe there is already a system which is capable to responding to strong demand variability and the integration of green energy. Apart from enabling the integration of variable renewables such as wind and solar, the existing gas infrastructure readily allows for the transport of biomethane.

Example: Annual gas and electricity consumption in NL

The European Gas System Achieving the clean future: How gas can helpA key role in Europe’s Energy Mix

Gas is an excellent solution for final consumption. In many sectors such as heating, industry, power production and transport gas is the fuel of choice.

While gas is a key component of Europe’s energy mix, the transmission pipelines, storage facilities and LNG regasification terminals are the core part of the European gas system.

For secure gas supplies and competition in the gas sector it is crucial to optimize the use of existing gas infrastructures while identifying where new investments are required. This means that the existing infrastructure should be utilized in an optimal and efficient way, before investments in new infrastructure are made. These investments should be primarily market driven. For some specific investments which are not fully supported by the market, targeted support, also to meet policy objectives such as security of supply, can be considered. Nevertheless, these investments should not be detrimental to existing infrastructure or market based projects. GIE members developed a number of voluntary initiatives, such as the Aggregated Gas Storage Inventory (AGSI+) or the Aggregated LNG Storage Inventory (ALSI) in order to foster transparency in a competitive European gas market.

A well interconnected, integrated and flexible gas infrastructure network in Europe is key for enhancing supply security, integrating European wholesales markets and ensuring the free flow of energy across the borders. It is necessary to enforce the right regulatory framework to take full benefit of existing and future gas infrastructures, guaranteeing the physical availability of gas within the system and the needs of the market. Infrastructure needs are different between markets and regions. Therefore, a balanced approach is needed to leave room for national and regional assessments on the most appropriate tools to best meet customer expectations.

Our energy systems are increasingly interconnected. Gas is transported through transmission networks over long distances, crossing in Europe an average of two Member States. In addition, the electricity and gas systems are becoming increasingly interdependent. This requires increased cooperation at EU level between all parties and organizations involved, including GIE, ENTSOs and ACER.

The gas sector continues to innovate, offering cost-efficient solutions to its customers, while contributing actively to the EU energy and climate objectives. Such innovations can, in combination with existing gas infrastructure, ensure the most efficient use of renewable energy, balancing the volatility of renewable energy sources.

Gas is part of the green solutionSubstituting carbon rich fuels can substantially reduce CO

2 and small particles emissions in the short term

and contribute to the EU’s long term decarbonisation policy objectives. It is a readily available solution to reduce CO

2 emissions in the power and transport

sector, with already existing infrastructure.

Gas is efficientGas technology is extremely efficient, resulting in cost-efficiency for its users. Existing pipelines, storages and terminals are a cost effective way of transporting energy, resulting in affordable energy for European consumers.

Gas is reliableGas is supplied from a multitude of sources, with a significant share of European suppliers and via its LNG infrastructure connected to the world market. The European infrastructure is very well interconnected, contributing to a resilient, flexible and stable energy source.

Gas is abundantThere are large reserves within reach of the European market through pipelines or LNG.

Biogas: Produced by breaking down organic matter such as manure, plant material, green or food waste, when upgraded to biomethane it can be injected into the high pressure transmission system for natural gas or used for the blending of hydrogen, providing significant CO

2

savings potentials.

Heat Pumps: Gas heat pumps are being developed to heat and generate electricity for low-emission buildings. They can increase energy savings and enhance renewables in the domestic heating sector.

Carbon capture and geological storage (CCS) is a technique for trapping carbon dioxide emitted from large point sources such as industrial plants, compressing it, and transporting it to a suitable storage site where it is injected into the ground. This technology has significant potential to help mitigate climate change in Europe and is recognised as an essential technology in many scenarios for meeting the 2050 objectives.

Mobility: Natural gas has great potentials beyond the use in CNG heavy duty vehicles and ships. An increasing number of LNG vehicles at competitive prices are offered to customers, and the number of filling stations is increasing annually. This allows for large reductions in CO

2

emissions, particulate matter, NOX and noise emissions in

Europe’s cities and urban areas. With almost 20% annual growth in registrations of natural gas vehicles worldwide, gas has the potential to contribute significantly to the decarbonization of the transport sector.

Power-to-Gas: A process where excess (renewable) electricity is used to produce hydrogen. Apart from its direct use for vehicles and public transport, hydrogen can be injected into the gas grid and mixed up with gas for further distribution and usage. Hydrogen can be further converted into (synthetic) methane with great potentials to convert excess electricity from renewables into methane, storing it for later use, when its most needed, i.e. at peak demand.

Small Scale: LNG as a transport fuel for ships and trucks can meet the most stringent pollutant emission levels set by the EU, emitting 20-25% less CO

2 than conventional

vehicles. SOX, NO

X and carbon monoxide emissions can

all be significantly cut by switching from oil to gas in the transport sector.

140

GW

120

100

80

60

0Q1 Q2 Q3 Q4

40

20

gas consumptionelectricity consumption