The Western European Gas Market Outlook 2010: Country profiles of supply, demand, regulation and infrastructure

Report Summary

European gas demand was volatile through 2009, with some countries seeing slight declines in demand. However, the longer term forecast is continued growth for the Western European gas market as new gas-fired power plants come on-stream. ‘The Western European Gas Market Outlook 2010’ is a newly updated management report that examines the role of gas within each of the major Western European utilities markets and analyses the differences that exist in terms of gas self sufficiency, and future growth of demand. This report provides new and updated analysis of 19 Western European gas markets, with detailed data on supply and demand balances. Each country profile features supply and demand overviews, an examination of key governmental, legal and political influences on the sector and an analysis of wholesale trading and the pipeline, LNG and storage infrastructure.

Key features of this report

• An understanding of Western European gas regulation, including local legislation, competitive conditions and market reforms.
• Gas supply data in billion cubic metres as well as production, pipeline imports and exports by country and LNG imports.
• Gas demand data by consumer type divided into residential, non-residential and power generation in billion cubic metres.
• An overview of wholesale gas trading market in each country focussing on the market owners and operators, the active players, liquidity and future prospects.
• Gas demand forecasts for each country to 2020, in addition to market trends detailing gas production and demand by sector.

Scope of this report

• Understand how manufacturers are formulating existing and new products to meet consumer demands for natural and healthful food and drink.
• Understand how each of the major food and drinks categories are changing in terms of ingredient formulations.
• Get up to speed on emerging novel ingredients and the benefits they offer consumers.
• Consider whether you should be looking beyond your present product portfolio for emerging opportunities.
• Prompt your marketing and NPD teams with product and marketing ideas from around the world.
• Set goals and objectives for your company’s new product development pipeline.

Key findings from this report

• At 17%, gas plays an important role in the Austrian primary energy mix. In common with many other parts of Europe, gas is gaining market share by backing out coal.
• Belgium’s pipeline infrastructure is dominated by its transmission infrastructure, which is also interconnected with the distribution grid. Both the transmission and distribution grids are operated by Fluxys.
• Denmark has been a gas producer since the late 1970’s. Gas is produced by both the state oil company Dansk Olie og Naturgas (DONG) and by the Danish Underground Consortium which is owned by A.P. Moeller-Maersk (39%), Shell (46%) and Texaco (15%).
• A limited (but rapidly growing) wholesale market exists in France, following the creation of national trading zones, known as Points d’Echange de Gaz (PEGs), in 2004.
• Dutch gas has long played a key role in meeting European gas demand. The Groningen field is central to the Dutch gas production industry, not only as a result of its large size and the fact that it has the lowest technical cost of gas in Europe, but also as a result of its high swing flexibility.

Key questions answered

• How has gas production and consumption changed over time?
• Where does each country source its imported gas from?
• How has liberalization affected national gas markets?
• What are the key developments in pipeline infrastructure?

Table of Contents

Chapter 1 Austria 13
Market summary 13
Supply and demand balance 14
Supply overview 14
Demand overview 16
Wholesale trading 18
Infrastructure 19
Pipelines 19
Storage 20

Chapter 2 Belgium 22
Market summary 22
Supply and demand balance 23
Supply overview 24
Demand overview 24
Wholesale trading 26
Infrastructure 27
Pipelines 27
Storage 30
LNG 30

Chapter 3 Cyprus 32
Market summary 32
Infrastructure 33
LNG 33

Chapter 4 Denmark 34
Market summary 34
Supply and demand balance 35
Supply overview 36
Demand overview 37
Wholesale trading 39
Infrastructure 40
Pipelines 40
Storage 41

Chapter 5 Finland 42
Market summary 42
Supply and demand balance 43
Supply overview 43
Demand overview 44
Infrastructure 46
Pipelines 46

Chapter 6 France 48
Market summary 48
Supply and demand balance 49
Supply overview 50
Demand overview 52
Wholesale trading 54
Infrastructure 55
Pipelines 55
Storage 55
LNG 57

Chapter 7 Germany 59
Market summary 59
Supply and demand balance 60
Supply overview 60
Demand overview 62
Wholesale trading 63
Infrastructure 64
Pipelines 64
Storage 69
LNG 75

Chapter 8 Greece 76
Market summary 76
Supply and demand balance 77
Supply overview 77
Demand overview 79
Infrastructure 80
Pipelines 80
Storage 83
LNG 83

Chapter 9 Ireland 84
Market summary 84
Supply and demand balance 85
Supply overview 85
Demand overview 87
Wholesale trading 89
Infrastructure 90
Pipelines 90
Storage 91
LNG 91

Chapter 10 Italy 93
Market summary 93
Supply and demand balance 94
Supply overview 95
Demand overview 97
Wholesale trading 99
POGAS 99
IGEX 100
Infrastructure 101
Pipelines 101
Storage 102
LNG 104

Chapter 11 Luxembourg 106
Market summary 106
Supply and demand balance 107
Supply overview 107
Demand overview 108
Infrastructure 110
Pipelines 110

Chapter 12 Malta 112
Market summary 112

Chapter 13 The Netherlands 113
Market summary 113
Supply and demand balance 114
Supply overview 115
Demand overview 118
Wholesale trading 120
Infrastructure 121
Pipelines 121
Storage 124
LNG 124

Chapter 14 Norway 126
Market summary 126
Supply and demand balance 127
Supply overview 128
Demand overview 129
Infrastructure 131
Pipelines 131
LNG 132

Chapter 15 Portugal 133
Market summary 133
Supply and demand balance 134
Supply overview 135
Demand overview 136
Wholesale trading 137
Infrastructure 137
Pipelines 137
Storage 138
LNG 139

Chapter 16 Spain 140
Market summary 140
Supply and demand balance 141
Supply overview 142
Demand overview 145
Wholesale trading 147
Infrastructure 148
Pipelines 148
Pipeline Developments 148
Storage 149
LNG 151

Chapter 17 Sweden 153
Market summary 153
Supply and demand balance 154
Supply overview 155
Demand overview 156
Wholesale trading 158
Infrastructure 159
Pipelines 159
Storage 160
LNG 160

Chapter 18 Switzerland 161
Market summary 161
Supply and demand balance 162
Supply overview 163
Demand overview 164
Infrastructure 166
Pipelines 166

Chapter 19 United Kingdom 168
Market summary 168
Supply and demand balance 169
Supply overview 170
Demand overview 172
Wholesale trading 174
Infrastructure 175
Pipelines 175
Storage 176
LNG 179
Appendix 180
Definitions 180

List  of Figures

Figure 1: Austria, gas production (bcm), 1990─2009e 15
Figure 2: Austria, gas import supply sources (%), 2009e 16
Figure 3: Austria, gas sectoral consumption (%), 2009e 17
Figure 4: Austria, gas historical and forecast demand (bcm), 1990─2020f 18
Figure 5: Belgium, gas pipeline import supply sources (%), 2009e 24
Figure 6: Belgium, gas sectoral consumption (%), 2009e 25
Figure 7: Belgium, gas historical forecast demand (bcm), 1990─2020f 26
Figure 8: Denmark, gas production (bcm), 1990─2009e 36
Figure 9: Denmark, gas export supply sources (%), 2009e 37
Figure 10: Denmark, gas sectoral consumption (%), 2009e 38
Figure 11: Denmark, gas historical and forecast demand (bcm), 1990─2020f 39
Figure 12: Finland, gas import supply sources (%), 2009e 44
Figure 13: Finland, gas sectoral consumption (%), 2009e 45
Figure 14: Finland, gas historical and forecast demand (bcm), 1990─2020f 46
Figure 15: France, gas production (bcm), 1990─2009e 51
Figure 16: France, gas (pipeline) import supply sources (%), 2009e 52
Figure 17: France, gas sectoral consumption (%), 2009e 53
Figure 18: France, gas historical and forecast demand (bcm), 1990─2020f 54
Figure 19: Germany, gas production (bcm), 1990─2009e 61
Figure 20: Germany, gas sectoral consumption (%), 2009e 62
Figure 21: Germany, gas historical and forecast demand (bcm), 1990─2020f 63
Figure 22: Greece, gas production (bcm), 1990─2009e 78
Figure 23: Greece, gas import supply sources (%), 2009e 79
Figure 24: Greece, gas consumption by sector (%), 2009e 80
Figure 22: Ireland, gas production (bcm), 1990─2009 87
Figure 23: Ireland, gas consumption by sector (%), 2009 88
Figure 24: Ireland, gas historical and forecast demand (bcm), 1990─2020f 89
Figure 25: Italy, gas production (bcm), 1990─2009e 96
Figure 26: Italy, gas imported supply sources (%), 2009e 97
Figure 27: Italy, gas sectoral consumption (%), 2009e 98
Figure 28: Italy, gas historical and forecast demand (bcm), 1990─2020f 99
Figure 29: Luxembourg gas import supply sources, 2009e 108
Figure 30: Luxembourg, gas sectoral consumption (%), 2009e 109
Figure 31: Luxembourg, gas historical and forecast demand (bcm), 1990─2020f 110
Figure 32: Netherlands, gas production (bcm), 1990─2009e 116
Figure 33: Netherlands, gas import supply sources (%), 2009e 117
Figure 34: Netherlands, gas export supply sources (%), 2009e 118
Figure 35: Netherlands ,gas sectoral consumption (%), 2009e 119
Figure 36: Netherlands, historical and forecast demand (bcm), 1990─2020f 120
Figure 37: Norway, gas production (bcm), 1990─2009e 128
Figure 38: Norway, gas export supply sources (%), 2009e 129
Figure 39: Norway, gas sectoral consumption (%), 2009e 130
Figure 40: Norway, gas historical and forecast demand, 1990─2020f 131
Figure 41: Portugal, gas import supply sources (%), 2009e 135
Figure 42: Portugal, gas sectoral consumption (%), 2009e 136
Figure 43: Portugal, gas historical and forecast demand (bcm), 1990─2020f 137
Figure 44: Spain, gas production (bcm), 1990─2009e 143
Figure 45: Spain, gas (pipeline) import supply sources (%), 2009e 144
Figure 46: Spain, gas (LNG) import supply sources (%), 2009e 145
Figure 47: Spain, gas consumption by sector (%), 2009e 146
Figure 48: Spain, gas historical and forecast demand (bcm), 1990─2020f 147
Figure 49: Sweden, gas import supply sources (%), 2009e 155
Figure 50: Sweden, gas sectoral consumption (%), 2009e 157
Figure 51: Sweden, gas historical and forecast demand (bcm), 1990─2020f 158
Figure 52: Switzerland, gas import supply sources (%), 2009e 164
Figure 53: Switzerland, gas sectoral consumption (%), 2009e 165
Figure 54: Switzerland, gas historical and forecast demand (bcm), 1990─2020f 166
Figure 55: UK, gas production (bcm), 1990─2009e 171
Figure 56: UK, gas import supply sources (%), 2009e 172
Figure 57: UK, gas consumption by sector (%), 2009e 173
Figure 58: UK, gas historical and forecast demand (bcm), 1990─2020f 174

List of Tables

Table 1: Austria, gas supply and demand balance (bcm), 2008─09e 14
Table 2: Austria, gas transmission pipelines 20
Table 3: Austria, storage sites 21
Table 4: Belgium, gas supply and demand balance (bcm), 2008─09e 23
Table 5: Belgium, gas transmission pipelines 29
Table 6: Belgium, gas storage sites 30
Table 7: Belgium, LNG terminal 31
Table 8: Cyprus, LNG terminals 33
Table 9: Denmark, gas supply and demand balance (bcm), 2008─09e 35
Table 10: Denmark gas transmission pipelines 41
Table 11: Denmark gas storage sites 41
Table 12: Finland, gas supply and demand balance (bcm), 2008─09e 43
Table 13: Finland, gas transmission pipelines 47
Table 14: France gas supply and demand balance (bcm), 2008─09e 49
Table 15: France cross-border gas transmission pipelines 55
Table 16: France gas storage sites 56
Table 17: France gas storage sites 57
Table 18: France, LNG terminals 58
Table 19: Germany, gas supply and demand balance (bcm), 2008─09e 60
Table 20: Germany, gas transmission pipelines 66
Table 21: Germany, gas transmission pipelines continued 67
Table 22: Germany, gas transmission pipelines continued 68
Table 23: Germany, gas transmission pipelines continued 69
Table 24: Germany, gas storage sites 70
Table 25: Germany, gas storage sites continued 71
Table 26: Germany, gas storage sites continued 72
Table 27: Germany, gas storage sites continued 73
Table 28: Germany, gas storage sites continued 74
Table 29: Gas access to Europe 75
Table 30: Greece, gas supply and demand balance (bcm), 2008─09e 77
Table 31: Greece, gas transmission pipelines 82
Table 32: Greece, LNG terminals 83
Table 33: Ireland, gas supply and demand balance (bcm), 2008─09 85
Table 34: Ireland LNG terminals 92
Table 35: Italy gas supply and demand balance (bcm), 2008─09e 94
Table 36: Italy, gas transmission pipelines 102
Table 37: Italy, gas storage sites 103
Table 38: Italy, gas storage sites continued 104
Table 39: Italy, LNG terminals 105
Table 40: Luxembourg gas supply and demand balance (bcm), 2008─09e 107
Table 41: Netherlands, gas supply and demand balance (bcm), 2008─09e 114
Table 42: Netherlands, gas transmission pipelines 122
Table 43: Netherlands, gas transmission pipelines continued 123
Table 44: Netherlands, gas storage sites 124
Table 45: Netherlands, LNG terminals 125
Table 46: Norway, gas supply and demand balance (bcm), 2008─09e 127
Table 47: Norway gas transmission pipelines 132
Table 48: Portugal, gas supply and demand balance (bcm), 2008─09e 134
Table 49: Portugal, gas transmission pipelines 138
Table 50: Portugal, gas storage sites 139
Table 51: Portugal LNG terminal 139
Table 52: Spain gas supply and demand balance (bcm), 2008─09e 141
Table 53: Spain, gas transmission pipelines 149
Table 54: Spain, gas storage sites 150
Table 55: Spain, gas storage sites continued 151
Table 56: Spain, LNG terminals 152
Table 57: Sweden gas supply and demand balance (bcm), 2008─09e 154
Table 58: Sweden gas transmission pipelines 160
Table 59: Sweden LNG terminals 160
Table 60: Switzerland, gas supply and demand balance (bcm), 2008─09e 162
Table 61: Switzerland, gas transmission pipelines 167
Table 62: UK, gas supply and demand balance (bcm), 2008─09e 169
Table 63: UK cross–border gas transmission pipelines 176
Table 64: UK gas storage sites 177
Table 65: UK gas storage sites 178
Table 66: UK LNG terminals 179