Jean-Marc Leroy, GIE President

« Prospects for Russia-EU energy cooperation. Gas aspect »

Berlin, 15 June 2017

Natural gas marketRules of the game; current state and

development

Gas Infrastructure Europe (GIE) is a European non-profit lobbying association established in 2005. GIE represents the sole interest of the infrastructure industry in the natural gas business.GIE voices the views of its members vis-à-vis the European institutions, regulators and other stakeholders

European gas markets: stocktaking

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European gas markets

Competitiveness

Regulatory Framework

Infrastructures

Supply / Demand • Supply patterns adapting to new reality

• New price concepts

• Infrastructures development driven by SoS and market creation considerations.

• New emerging uses of gas infrastructures.

• Increasing integration of markets.

• Stronger price correlation between hubs.

• Variety of players, contract types, sources.

• Network Codes streamlining the use of infrastructure and supporting internal market creation

• Climate policy boosting the role of gas and gas infrastructure.

Making regulations fit for future

Holistic approach to energy system is the cornerstone: power and gas interplay.

Innovation will ensure optimized use of existing infrastructure and new investment -biogas, power-to-gas, small scale LNG etc. - while fostering Energy Transition objectives.

EU gas regulation and network codes are still under implementation in EU Member States. The full potential of what can be achieved is still to be seen.

In a context of diversity of market developments, market mergers should be encouraged between similarly mature areas in a regional approach, rather than in a single EU zone approach.

The high value of flexibility and security of supply needs to be reflected in a fair cost regulation when it comes to under-utilized assets.

Market design to facilitate free flow of energy not only across borders but also across sectors (heating, transport, electricity etc.)

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Gas infrastructures: at the heart of optimized energy systems

• Gas infrastructures deliver high storage and transmission capacity for smart energy systems• Gas infrastructures are critical for RES integration• Power-to-gas and other technologies open up new systemic optimization possibilities

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