1. GIE Annual Conference Bratislava, 28-29 September 2006
Ensuring Secure and Competitive European Gas Supplies
Johannes ENZMANN
European Commission DG Energy and Transport Unit Electricity and Gas

2. EU25 - Demand and Supply
Growth of demand: 37% Growth of imports: 135%

3. The growing role of LNG World LNG trade: LNG in the EU:
mid 1970s 10 bcm at a global scale
Mid 1990s 80 bcm
Since then more than doubled to 180 bcm in 2004
Further growth is expected, some analysts forecast another 180 bcm by 2010
LNG in the EU:
In 2004, EU LNG imports accounted for 12% of imports (34 bcm) and 7% of total consumption
Unevenly distributed, some Member States import around 60% of their needs in form of LNG
Underlying reasons: techology & economies of scale; market opening and market opportunities

4. From regional to global markets
Growing demand for gas is a global tendency
Growing role for LNG not only in Europe, but also other regions (US, India, China etc)
Contractual developments of LNG contracts allow better exploiting market opportunities
Competition between gas consuming regions likely
...but also a more diversified supply portfolio and thus enhanced security of supply

5. Investments in an attractive market
Supply and demand developments clearly point to the need for new investments in gas infrastructure as well as E&P
IEA figures suggest infrastructure investments in the order of € 200 bn by 2030
An attractive market:
No operational barriers to enter the market
No barriers to market the gas
Free flow of gas allowing exploiting buisness opportunities
Competitive prices

6. Some Preconditions to Be Met
Unbundling
TSOs geared to market capacity
Entirely independent of supply interests
Clear rules for investments
Providing a stable, clear and reliable framework
Taking into account the regulatory environment
In line with non-discrimination and transparency
Non-discriminatory and transparent capacity allocation mechanisms including effective congestion management
Sufficient level of transparency etc

7. Investments in existing and new infrastructure
Non-discriminatory and transparent capacity allocation mechanism
Overall transparency on available capacity
Open season, open subscription period
Lead time corresponding to duration of the contract
Clear rules concerning tariffs
Economically viable investments including cross border
Coordination among and between relevant authorities and TSOs
Obligation to respond to market demand

8. Conclusions Obvious need for investments
Need to define clear rules in line with the requirements of a competitive market
Main elements are available, but may turn out not to be sufficient
Further efforts are necessary…