TECHNICAL ASSOCIATION OF THE EUROPEAN NATURAL GAS INDUSTRY European Gas Industry Pro-active attitude concerning pipelines safety Daniel Hec, Secretary General The Hague - 8 th /9 th March 2006

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety 2 1. Who is MARCOGAZ? The Technical Association of the Natural Gas Industry in Europe Founded for technical harmonization purpose Recognized representative Gas Industry Organisation at EU level for all technical issues Close contacts with many European and International Industry organisations: AEGPL, CONCAWE, FACOGAZ, FAREGAZ, EHI, GCI-UICP, GIE, IPLOCA, OGP,…. Cooperate with Eurogas (commercial aspects), GERG (R&D) and GIE (infrastructure management) Associated member of EASEE-gas and IGU Liaison with many CEN Technical Committees

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety 3 2. Mission and Objectives MISSION to be the European voice concerning any technical issue of interest for the Gas Industry in Europe MAIN OBJECTIVES to promote safety, reliability, cost effectiveness, environmental advantages of natural gas systems to identify, monitor and take action on technical legislation at EU level to represent the European Natural Gas Industry in standardisation activities conducted by CEN, ISO, OIML and others to identify appropriate levels of competence for a safe and effective operation of gas systems to study any technical subject of interest for its Members

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety 4 3. MARCOGAZ Members National Technical Gas Associations or Gas companies (transmission and distribution network operators) 16 Countries represented Austria, Belgium, Czech Republic, Denmark, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Slovak Republic, Spain, Switzerland and United Kingdom

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety 5 4. MARCOGAZ Member Countries

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety 6 5. MARCOGAZ organization K. Homann, RWE Transportnetz Gas, President L. Scopesi, CIG, Vice-President J-P. Beringuier, GdF, FT. Jannemann, DVGW, DL. Scopesi, CIG, I *with Eurogas **common with SCGI ***common with SCGU

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety 7 6. European Gas Grids: a very complex system

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety 8 7. European Gas Pipeline System main figures Transmission network length Compression plants City gates Cross border points LNG terminals Underground storages Distribution network length Service lines Customers 205,842 km , in operation 100 1,389,925 km 53,922,454 89,470,685 (Source MARCOGAZ Members – 16 EU Countries – 2004)

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety 9 8. Market Liberalization: European regulatory framework Directive 98/30/CE (22/6/98) (1 st Gas directive) Directive 2003/55/CE (26/6/03) (2 nd Gas directive) Market liberalization (full opening in 2007) Regulatory third party access Legal unbundling of transmission and distribution network operators from commercial activities Designation of National Regulatory Authorities

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety The new context of Directive 2003/55/EC Technical Requirements Scope: Common rules for transmission, distribution, supply and storage Article 5: Security of supply Quality and level of maintenance Technical emergency response Article 6: Technical Rules for interoperability Technical safety criteria Minimum technical design and operational requirements Article 8.1.a) and 12.1: Each transmission and distribution operator shall operate, maintain and develop under economic conditions secure, reliable and efficient systems

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety Typical Pipeline Safety Regulation Directive 2003/55/EC (Gas market) National implementation + National Safety regulations Technical rules/EN standards Detailed specifications/Company Codes of practice

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety Gas Industry Involvement: self regulation Since >40 years development of quality cost effective specifications and standards R&D efforts led to many technical improvements: high resistance steels (x80, x100), polyethylene pipes systems for distribution……. 1990: creation of CEN TC234 « Gas Infrastructure » (secretariat DVGW - Germany) Concept of functional standard for design construction, operation and maintenance of gas systems CEN TC234 standards cover the entire on shore gas chain 1996: MARCOGAZ introduced the PIMS (Pipeline Integrity Management System)

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety Functional EN standards available (example) EN 1594: Pipelines for MOP >16 bar (transmission) EN part 1 to 5: Pipelines for MOP <16 bar (distribution) EN 1775: Gas pipe work for buildings (internal installation) EN 1988 part 1 to 4: Underground gas storages EN 12186: Gas pressure regulating stations for transmission and distribution EN 12583: Compressor stations

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety EN 1594

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety PIMS: an initiative of the Gas Industry (1) Safety Management System related to Pipeline Integrity To be elaborated by each Pipeline System Operator to demonstrate that hazards are fully controlled Key elements: -use of high technological standards for design and construction -define pro-active measures for ensuring fit for purpose -lay down efficient emergency procedures -organize incident investigation -define role, missions of personnel, training

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety PIMS: an initiative of the Gas Industry (2) -MARCOGAZ Guideline on the definition of Performance Indicators for Safety Management Systems revised in CEN Technical Specifications in force CEN/TS « Frame of Reference regarding Pipeline Integrity Management Systems » CEN/TS « Guideline for Safety Management Systems for natural gas transmission pipelines » and another one under approval « Guideline for Management System for Gas Distribution Systems »

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety A very good safety record EGIG (European Gas Pipeline Incident Group) created in major pipeline operators: to provide a valuable gas and reliable source of information analysis of data from 1970 to 2004 shows: 1. a very good safety level compared with other means of transportation (1970: 0,88 incident/1000km 2004: 0,19 incident/1000km) 2.third party damage is the main threat to pipelines (Ghislenghien 2004) MARCOGAZ is preparing recommendations on this issue

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety EGIG Statistics

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety R&D Efforts R&D on European & Global scale generates knowledge and offers a forum to exchange experience and information to: cope with all threats in a pro-active way European Pipeline Research Group (EPRG) Members: all major Gas Companies & steel and line pipes manufacturers Pipeline Research Council International, Inc. (PRCI) Members: Pipeline Companies world wide Groupe Européen de Recherches Gazieres (GERG) Members: European Gas Companies

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety Conclusion A reliable and safe gas supply is essential to modern societies The Gas Industry has always been pro-active concerning safety issues by: - producing and using high level safety standards - developing appropriate Management Systems - promoting and financing improvement through R&D The result is that pipeline is by far the safest way to transport energy The main threat to pipelines is third party damage: actions shall be carried out with all interested parties to reduce this risk

8-9/03/06 European Gas Industry – pro-active attitude concerning pipelines safety End of presentation Thank you for your attention! to: Website: