Uwe H. Fip Senior Vice President E.ON Global Commodities SE, Düsseldorf EBC Working Committee Energy Introductory Remarks by the Chairman EBC WORKING COMMITTEE “ENERGY” Lerici, 17 April 2015
Uwe H. FipSenior Vice President
E.ON Global Commodities SE, Düsseldorf
EBC Working Committee Energy
Introductory Remarks by the Chairman
EBC WORKING COMMITTEE “ENERGY”Lerici, 17 April 2015
1. Introductory Remarksby the Chairman Uwe H. Fip, Senior Vice President, E.ON Global Commodities SE
2. Recent developments in European gas markets
by Vyacheslav Krupenkov, Managing Director, Gazprom Germania GmbH
3. Med Hydrocarbon opportunities: the Italian case
by Massimo Sciancalepore, Senior Vice President, Enel
4. European Gas Market Developments
by David Salfati, Vice President Gas Supply East, GDF Suez
5. New gas infrastructure in Europe
by Oliver Giese, Senior Vice President, E.ON Global Commodities SE
6. Esimit Europe Energy
Igor Simcic, Chairman of the Esimit Europa Project and owner of the Esimit Europa 2
7. Discussion and outlook on upcoming meetings
Agenda
Source: CERA, bcm @ 9,500 kWh/cm; Alba Soluzioni
The Italian gas market is the third larges market within the EU…
Italy is the third largest market for consumption of natural gas within the EU, following Germany and UK.
The consumption is expected to decline from a peak of over 80 bcm (2005) to about 60 bcm in 2020. During the same time, indigenous production is expected to decrease by 40%.
Russia and Algeria supply about 2/3 of total imports of the country.
Gas accounts for 40% of power production.
By 2020, renewable energy sources shall have a share of 17% of the total gross final energy consumption.
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AlgeriaPipe
LNG
NetherlandsRussia Other
Pipe
LNG
% Share of total imports
Norway
bcm
51%
18%
10%
14%
7%
Key facts of the Italian marketGas imports to Italy by country
… with a well established infrastructure …
Vast storage capacity available with about 16 bcm working gas capacity
Current storage filling level at approx. 35%*
Location of storagesExiting pipeline network and main entry points
Tarvisio (44/23)
Gorizia(2/0.2)
Passo Griess(24/9)
PanigagliaLNG
(24/9)
Mazara del Vallo (38/21) Gela
(12/7)
Name (technical Capacity/
Volume 2012)
CellinoCollalto
Cotignola
Brugherio
Sergnano
Minerbio
Sabbioncello
Fiume Treste
Cortemaggiore
Settala
Ripalta
Source: CERA, Alba Soluzioni, Stogit, Edison
OLT(3.8/)
* Information as of 08th April 2015
4
… but shrinking demand for natural gas
Source: CERA, Eclipse
residential/commercial
industry
power generation
other €/MWh
%
bcm
%
%
%
Hub prices for selected European countriesGas demand by sector
5
The 3rd Energy Package is almost fully adopted by the member states
DG Energy reports about the positive impact of the market integration with prominence on the following issues: the continuous stability of wholesale gas prices
an increase in the choice of suppliers for consumers
better infrastructure links between EU countries
an intensified cross-border trading of gas
common rules on the use of gas networks that result
in an increased efficiency of pipeline use
non-discriminatory access to core infrastructure
accomplished
pending
Status of implementation
HU RO
Check of amendment
of national lawNo informationavailable
LV
Amendment of national lawas of 2017
Do we share this view?
Important findings of the latest EU Single Market Report
Source: Single Market Report 2014
6
The Southern Corridor has significant potential to bring new pipeline gas to Europe…
TAP(10 bcm/a)
TANAP* (16 bcm/a)
South Caucasus Pipeline(+16 bcm/a)
Trans CaspianGas Pipeline
IGI / Poseidon(14 bcm/a)
Blue Stream(16 bcm/a)
East Med(15 bcm/a)
Bulgaria-Austria
Israel-Turkey/(8 bcm/a)
Irak-Turkey(10+ bcm/a)
Existing pipeline
planned pipelineSouthern corridor
76
Turkish Stream
Romania-Slovakia
Source: E.ON
7
…with two big projects, Turkish Stream and TANAP as part of the Southern Corridor…
Source: Gazprom
8
…and also supports ambitious mega projects on the EU side like TAP and Eastring
The Eastring Mega Project
Approx. 832 – 1.015 km length
(depending on route)
Planned final capacity of 40 bcm
Fully compliant with EU rules and
regulations
Secures 100% of Balkan countries
consumption of natural gas
Enhances security of supply to Europe by
providing diverse supply routes (e.g. via
the Black Sea or the Caspian region)
Key facts of “Eastring”
Source: Eastring
9
South Stream
Sou
rce:
Gaz
prom
Route of Hungarian segment of South Stream under discussion
Design to be selected until the end of late October 2014
First gas flows expected for 2017
12 m
2,380 km (offshore: 931 km)
Total capacity: 63 billion cubic meters
32 inch
Latest developments
On Tuesday, 7th of April 2015, Greece repeated its amition to play an important role in the pipeline project
Length of onshore currently planed with about 180 km
Capacity in total 63 bcm/a
Arround 50 bcm for the creation of a regional hub (at the Turkish-Greek border)
Announced date of completion is Dec 2016
Turkish Stream
Project details
Gazprom cancelled project South Stream on Dec 2014
10
The next EBC Energy Committee will take place in the cause of the
18th AGM on 28th/29th May 2015 in Belgrade
TopicLow oil price environment – what
does it mean for the energy industry?
Upcoming EBC dates for your Calendar
1. Introductory Remarksby the Chairman Uwe H. Fip, Senior Vice President, E.ON Global Commodities SE
2. Recent developments in European gas markets
by Vyacheslav Krupenkov, Managing Director, Gazprom Germania GmbH
3. Med Hydrocarbon opportunities: the Italian case
by Massimo Sciancalepore, Senior Vice President, Enel
4. European Gas Market Developments
by David Salfati, Vice President Gas Supply East, GDF Suez
5. New gas infrastructure in Europe
by Oliver Giese, Senior Vice President, E.ON Global Commodities SE
6. Esimit Europe Energy
Igor Simcic, Chairman of the Esimit Europa Project and owner of the Esimit Europa 2
7. Discussion and outlook on upcoming meetings
Agenda