Gas Coordination Group Says EU Prepared for Natural Gas Crisis
November 24, 2009 // Published as a news service by IHS
The GCG examined the natural gas consumption and storage levels in the EU and assessed emergency responses that have been put in place since January 2009. Special focus was given to the countries most affected by the January 2009 crisis in southeast Europe and the Energy Community parties.
In its assessment, the GCG noted the full levels of storage in almost all EU member states and the fact that a number of short-term commercial agreements have been put in place to cover for the emergency case in those countries most hit by the January crisis.
New reverse-flow projects have been identified and are being implemented, with the European Recovery Plan providing a stimulus of €1.44 billion for new gas interconnectors and reverse-flow projects. In addition, industrial gas demand has dropped in 2008-2009 due to the economic crisis, and natural gas and liquefied natural gas prices have come down at European hubs.
The GCG noted the ongoing need to coordinate emergency planning with regional partners and implement the necessary infrastructure projects to safeguard security of supply. Previously, in its October meeting, the GCG assessed the progress of various regional gas initiatives, including joint emergency planning.
The European Commission (EC) also invited GCG members to run supply disruption scenarios at the EU and regional levels to identify the best possible responses to a disruption in gas supplies. The GCG will meet again on Dec. 14, 2009 to ensure a continuous assessment of the situation.
Further information is available on the Gas Coordination Group web site.
Background
The Gas Coordination Group was created in 2006 according to Directive 2004/67 relating to measures that guarantee security of natural gas supply. Chaired by the EC, it is composed of gas-competent representatives of EU member states, European organizations in the gas sector and consumers. The GCG meets regularly (at least four times per year) to exchange information and develop both short- and long-term concrete measures that reinforce the security of gas supply to the EU.
Directive 2004/67 sets out a three-step approach in case of supply crisis:
- Industry takes the necessary measures.
- If these are not adequate to mitigate the crisis, national measures are activated.
- If these measures are still not adequate and the crisis reaches the major supply disruption indicator (20% of all imports are missing), the European Community mechanism is activated - the GCG is convened to discuss what further steps can be taken and to assist member states in difficulty. The GCG can then propose further measures to the European Council.
In order to improve the level of preparedness of EU member states and industry in case of a supply disruption, the EC proposed a new regulation in July 2009 on security of gas supplies. The January 2009 gas crisis showed that a more coordinated approach is needed on a European level to provide stable and secure energy supply to European citizens.
The EC's draft regulation suggests common infrastructure and supply standards to protect customers, as well as the elaboration of preventive action plans and emergency plans at national, regional and EU levels. The European Council of October 2009 urged member states and the European Parliament to move rapidly on EC's proposal.
Source: European Commission (EC).