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Agenda
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1 Value of Storage & security of supply 2 Actual use of gas storage 3 Market & policy developments 4 Wrap-up
Gas storage and Security of Supply Robert Jan Maaskant - - PowerPoint PPT Presentation
Gas storage and Security of Supply Robert Jan Maaskant - - PowerPoint PPT Presentation
Gas storage and Security of Supply Robert Jan Maaskant Vice-Executive Secretary 4 June 2015, Brussels, Belgium Agenda Value of Storage & security of supply 1 Actual use of gas storage 2 Market & policy developments 3 Wrap-up 4 2
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1 Value of Storage & security of supply 2 Actual use of gas storage 3 Market & policy developments 4 Wrap-up
Agenda
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Value of storage
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Value of storage
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Value of storage
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Value of storage
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Gas storage and SoS
European Commission: LNG (33%) and storage (28%) play an important role in case of an interruption of gas supply in East
Source: European Commission, Stress test communication, 16 October 2014, COM(2014) 654 final, page 5
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Short-term measures: use of existing infrastructure Medium/ long-term measures: building infrastructure
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1 Value of Storage & security of supply 2 Actual use of gas storage 3 Market & policy developments 4 Wrap-up
Agenda
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Use of gas storage 2013-2014
Source: ENTSOG data
WINTER Withdrawal period SUMMER Injection period
MILD WINTER
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Use of gas storage 2012-2013
Source: ENTSOG data
LONG AND LATE WINTER
WINTER Withdrawal period SUMMER Injection period
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Use of gas storage 2011-2012
Source: ENTSOG data
COLD SPELL
WINTER Withdrawal period SUMMER Injection period
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Gas storage level (%) – EU 28
13 May 2015: gas in stock 28.3 bcm, 31.3% full Lowest point on 9 April: 23.2 bcm in stock, 25.0% full
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13 May 2015: 31.3% full
Source: GSE AGSI+ database
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Gas storage levels (beginning and end of heating season)
2012/13 Long/ late winter 2011/12 Cold spell 2013/14 Mild winter 2014/15 Normal winter
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Gas storage use in winter 2014 – 15
- High gas storage levels before start winter (>90%)
due to high levels in March 2014
- Relatively warm winter, but significantly higher withdrawal rates
- Gas storage level vary from year to year significantly depending on
various factors on the wholesale market
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1 Value of Storage & security of supply 2 Actual use of gas storage 3 Market & policy developments 4 Wrap-up
Agenda
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Summer-winter spread is an important driver for gas storage use
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Source: Timera Energy, (http://www.timera-energy.com/market-benchmark-for-gas-flexibility-value/) TTF
Summer-winter spreads currently historically low
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EU agenda
- Review of the security of supply regulation
- Projects of common interest list
- Gas storage strategy under the Energy Union
- Discussion on network code on transmission tariffs
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The market will surely fix it! It‘s definitely not part of our responsibility! Things have always turned out well!
Ongoing discussion on SOS in the gas sector on national and EU level
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GSE reaction to SoS study and review of 994/2010
Review 994/2010
- Physical backing for supply standard needed: gas storage ensures physical
availability close to demand and ‘a hub has never produced any gas’
- Member States should be able to increase supply standards if needed
- Member States should be able to make pivotal gas-fired power plants
protected customers, provided they are physically backed by firm capacity SoS study Various Member States have various mechanisms in place, SoS tools depend
- n a.o.:
- Import dependency
- Ability to cover seasonal modulation needs and peak demand
- Demand ratio between summer and winter.
- Structure of gas demand (household, industry, power generation etc.)
- Characteristics of the existing storage facilities
- Compliance with Regulation 994/2010 on security of supply, etc
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1 Value of Storage & security of supply 2 Actual use of gas storage 3 Market & policy developments 4 Wrap-up
Agenda
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Wrap-up gas storage & SoS
- AGSI+ and ENTSOG data show that gas storages are used, although
willingness to pay is low
- TYNDP and investment databases show that there are still projects being
developed.
- Market prices are low: risk of decommissioning/ mothballing, not a
driver for investments
- It will be interesting to see how planned projects will be realised in the
coming years...
– Summer-winter spreads continue to be the one of the key drivers to store gas – currently low summer-winter spread, development unpredictable – (EU) government intervention could play a role in realising some of the necessary infrastructure
- Gas storage is key to ensure Security of Supply
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