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The role of the European gridsin seeking energy independence

Euro-Case Conference 13 November 2012

Philippe BOUCLYCEO of GRTgaz

2012 Annual EURO-CASE ConferencePARIS – November 13, 2012

EU Energy consumption : the 3rd worldwide market

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Importance of oil, gas and coal

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Significant market differences

Crude Oil

Electricity

Natural gas

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• Worldwide market• Imports: mainly via oil tankers• Low transportation costs• Large crude oil storages

• National / European market• Domestic production• Limited interconnection capacities• High transportation costs• No storage

• European market / LNG linking markets in the world• Imports: mainly via gas pipelines• key importance of cross border flows• Structural dependence of central Europe on Russian gas• Large natural gas storages

EU-27 energy import dependence

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Total Coal Oil Gas

1995200020052010

90 %

80 %

70 %

60 %

50 %

40 %

30 %

20 %

10 %

0 %

Russia & Norway: the 2 main oil exporters

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34%

14%10%

6%

6%

6%

4%

4%3%

13%

EU imports of crude oil ‐ 2010 (%)

Russia

Norway

Libya

Sauda Arabia

Iran

Kazakhstan

Nigeria

Azerbaijan

Iraq

Others

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Russia & Norway: the 2 main gas exporters

32%

28%

14%

9%

4%3%

10%

EU imports of gas ‐ 2010 (%)

RussiaNorwayAlgeriaQatarNigeriaLibyaOthers

Key contribution to:

• Imports and security of energy supply

• Competition on the wholesale market

• EU Market integration

• Transition to a new European Energy mix

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European energy grids

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Priority corridors in Europe

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European energy roadmap

Challenges for the European gas grid

Increasing gas imports

Connection of new supply sources to Europe

Security of supply

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The Gas Target Model concept

Euro-Case Conference 13 November 2012

Europe's gas balance (bcm)

0

100

200

300

400

500

600

700

2008 2015 2020 2025 2030 2035

Production Net imports Demand

Competition between gas sources

Market integration

Electricity & gas markets interactions

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Impact of the future gas pipelines

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Gas pipelines and new projects in France

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Heat n

etworks

Electrolyse

Methanation

Carbon

CH4

H2

Renewable energy sources

Power grid : production by energy mix

Gas grid : imports, storage, natural gas, biogas

Smart grids for a global efficient energy system

Limited costs compared to gas prices

A major contribution to security of gas supply

A major contribution to competition on the wholesale market benefiting to final consumers

A key role for promoting indigenous energy production and preparing the future European energy mix

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Key advantages of the gas transmission system

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Thank you for your attention

For more information: www.grtgaz.com

Euro-Case Conference 13 November 2012