Conference China

Slide1: 

EU-China Energy Conference Shanghai 20-21 February 2006 “Natural gas and sustainable development : our common challenges” Presentation by Jean-Marie Devos, Secretary General Eurogas 

EU – China – Our common challenges: 

EU – China – Our common challenges China and EU are major energy importers have growing energy demand and consumption are concerned about security of energy supply

Summary: 

Summary Presentation of Eurogas Energy Efficiency, incentives, measures and instruments The European natural gas supply -figures Security of supply Conclusions

Slide4: 

Presentation of Eurogas

A Forum and an Ambassador of the European natural gas industry: 

A Forum and an Ambassador of the European natural gas industry Eurogas is a non profit association governed by the Belgian law. Offices are located in Brussels Objectives: To promote the interests of its membership, companies, national federations and associations involved in the supply, trading and distribution of natural gas, and related activities such as storage and LNG To propose the development of natural gas in Europe particularly in the legal, economic, technical and scientific areas to prepare studies and to promote cooperation within the gas industry To propose the smooth functioning of the European internal gas market To take stance on issues of interest to the European natural gas industry with respect to international and supra-national organizations including but not limited to the European Institutions and to public opinion.

33 members in 21 countries: 

33 members in 21 countries

Slide8: 

Energy efficiency, incentives, measures and instruments

Slide9: 

Energy efficiency is an important aspect of security of supply and improved competitiveness Eurogas is fully committed to energy efficiency as part of sustainable development Eurogas members are already engaged in major energy efficiency programmes

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Energy efficiency is about … Saving money by informing customers that gas as a heating fuel will contribute to save energy and to decrease domestic costs

Energy efficiency should lead to: 

Energy efficiency should lead to Change in the energy utilization attitudes of customers by actions lead by companies to encourage intelligent use of gas Energy efficiency is about …

Energy efficiency is about …: 

Encouraging use of new, more efficient appliances and of modern technology Energy efficiency is about …

Energy efficiency is about …: 

Helping customers save energy Encouraging training to increase knowledge and competence of professionals Energy efficiency is about …

Slide14: 

Facts and Figures

Slide15: 

World proven gas reserves Natural gas consumption by area Development of natural gas supplies until 2020 Breakdown of EU25 natural gas supplies EU25 imports by country

World proven gas reserves: 

World proven gas reserves Total Proven gas reserves 180 Tcm Source: BP

Natural Gas Consumption by Area: 

Natural Gas Consumption by Area Source: BP

Development of Natural Gas Supplies in the EU25: 

Development of Natural Gas Supplies in the EU25 billion m³ LNG share (in imports) 10% 15% 17% S2308_20m³ Remark: Malta and Cyprus are not supplied with natural gas Source E.ON Ruhrgas

Breakdown of EU25 Natural Gas Supplies: 

Breakdown of EU25 Natural Gas Supplies

EU25 imports in 2004: 

EU25 imports in 2004

Slide21: 

Security of supply

Slide22: 

The conditions for ensuring Security of Supply Access to reliable and diversified sources Diversity of robust delivery routes Importance of politically stable and legally clear relations with major non EU production areas (Russia, Mediterranean countries, new emerging areas, … ) Importance of level-playing field (EU-Russia dialogue, etc) Dialogues with major consumption areas (China, US, India, South America etc) Authorities must promote a competitive business climate Long term contracts and spot markets have both a role Long term investments Sustainable and efficient energy

Slide23: 

The Investment Challenge Upstream investments in production and transportation capacities will be necessary to meet gas demand in European Countries; How to attract investment ? The needed balance between right policy/legal framework and industrial initiative; “… governments may have a strategic interest in increased cooperation over gas supplies, it is not them that will invest in new infrastructures projects (…). It is rather companies that will do so, based on objective commercial consideration and risk analysis” (Ria Kemper, Sec. Gen. Energy Charter Secretariat, X/2003); Need for sound business decisions and market analysis with close cooperation of economic operators and financial institutions; Once defined from technical and business angles, projects should be facilitated through appropriate legal/regulatory/fiscal tools.

Conclusions: 

Conclusions EU and China face common challenges Security of supply Competitive natural gas Sustainable use of energy International cooperation Thank you