Liquefied natural gas and storage are elements of strategic importance for the European energy system

October 1, 2015

Gas infrastructure operators welcome the Commission’s consultation on an EU strategy for liquefied natural gas and gas storage. Gas Infrastructure Europe (GIE) submitted its response to this consultation and stressed the fact that natural gas is well placed to make an important contribution to the EU future energy mix. Gas is reliable, affordable and clean. It is thus crucial that the European Energy and Climate Policy recognises this important role, so that the EU gas market remains attractive for decades to come. Such policy should provide for an appropriate regulatory environment and confidence in the perspectives for the development of the natural gas market in the EU in the long-term future.

European LNG System Operators (LSOs) describe the dynamics of the LNG market as a global market which might change rapidly. Investments in gas infrastructure should primarily be market-based. Where investments are mainly driven by security of supply, the impact on existing infrastructure should be taken into account. So far, there is no common optimal share of LNG for each region or Member State. For this reason LSOs should be able to quickly develop commercial services in line with LNG market needs. GIE shared the opinion that there is no need for additional EU policy initiatives regarding access to LNG terminals.

On the storage side, Storage System Operators (SSOs) stress the fact that the insurance value of gas storage should be recognised. Depending on market characteristics, the physical availability of gas should be ensured through storage-related security of supply measures or market-based measures, while minimising market distortion. Some barriers for SSOs to be able to compete in the wider flexibility market should be removed, such as barriers for product innovation, lack of firm transmission capacity and lack of fair transmission tariffs.

GIE would like to point out some inaccurate and rather pessimistic views on the evolution of gas demand in Europe at the Annex of the consultation document by emphasizing that presenting consistent projections is important in sending coherent messages to suppliers, investors and other market stakeholders.

Note to editors

Gas Infrastructure Europe (GIE) is an association representing the interests of European natural gas infrastructure operators active in natural gas transmission, storage and LNG regasification. GIE is a trusted partner of European institutions, regulatory bodies and industry stakeholders. It is based in Brussels, the heart of European policymaking.

GIE currently represents 69 member companies from 25 countries. Its internal structure has three columns corresponding to the three types of infrastructure activities represented: GTE (Gas Transmission Europe), GSE (Gas Storage Europe) and GLE (Gas LNG Europe), all of which fall under the umbrella of GIE. This structure allows member companies to speak with one voice on infrastructure topics as well as to build positions on column-specific issues.

To find out more about GIE’s structure and activities, please visit our website at www.gie.eu .