Interconnection Gas Capacity in Europe

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
• ANALYSIS
  • Import capacity has priority over interconnection capacity
  • High pipeline import capacity will spur European gas market development
  • Investments in storage facilities will enhance interconnection
  • The EU must play a more visible role in ensuring adequate gas interconnectionImport capacity has priority over interconnection capacity
  • Import capacity has priority over interconnection capacity
    • As a net importer of gas, investment in gas import infrastructure is vital
    • Investment in interconnection capacity is necessary to facilitate efficient gas transportation
    • The EU emphasizes import capacity over interconnection
  • High pipeline import capacity will spur European gas market development
    • Russia will consolidate its position as a major exporter
    • North Africa will play a greater role in European gas supply
    • Southeast Europe will become a major corridor for gas transportation
    • Italy will become a significant gas player as import capacity increases
    • Higher imports necessitate greater interconnection capacity
  • Investments in storage facilities will enhance interconnection
    • Storage facilities enhance interconnection capacity
    • Greater emphasis is needed on storage investment
    • Storage investment is needed to enhance Italy' s position as a transportation hub
  • For example, over 90bcm of import pipelines are connected to Italy, yet only 2.5bcm of storage capacity has been committed for construction by 2015.The EU must play a more visible role in ensuring adequate gas interconnection
  • The EU must play a more visible role in ensuring adequate gas interconnection
    • Increased gas penetration demands enhanced gas interconnection
    • Established interconnections follow commodity price signals
    • Commodity price signals necessitate a bi-directional BBL pipeline
    • The lack of common national consensus on energy issues impedes the further development of gas interconnection
    • Establishing standardized European gas qualities is fundamental
  • Appendix
    • Definitions
    • Datamonitor Consultancy
    • Ask the Analyst
    • Disclaimer
  • List of Figures
    • Figure 1: European 2005-30 gas production/import scenario
    • Figure 2: Share of natural gas in final energy consumption, 2006
    • Figure 3: The Nord Stream project will deliver 55bcm of gas per annum into Europe by 2015
    • Figure 4: Algeria will deliver over 30bcm per annum of gas through various pipeline connections
    • Figure 5: The Nabucco pipeline project will deliver over 8bcm per annum of gas into Europe by 2012
    • Figure 6: Italy will become a significant gas player as import capacity increases
    • Figure 7: Relationship between gas inflows and outflows and the size of the domestic gas market, 2006
    • Figure 8: Italy has 16bcm of storage capacity, but only an additional 2.5bcm committed by 2015
    • Figure 9: Bi-directional gas flows into and out of the UK gas market closely follow market prices
    • Figure 10: The BBL pipeline is underpinned by along-term off-take agreement, but it will inevitably respond to cross-border economics