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World Energy Council Naples – 10 May 2017 Beate Raabe Secretary General LNG – Small scale, large potential
World Energy Council
Naples – 10 May 2017
Beate Raabe
Secretary General
LNG – Small scale, large potential
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Who isEurogas?
Members are 44 companies and associations
WholesaleRetail
Distribution
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Klaus Schäfer
Uniper
Led by people who know the business
President Vice-Presidents
Massimo Mantovani
Eni
Annie Krist
GasTerra
Edouard Neviaski
ENGIE
David Wells
Shell
Martin Herrmann (RWE)
Czech Gas Association
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General role of LNG in Europe
Alternative to pipeline gas
Diversification of supplies
• Global market and competitive prices
• Security of supply
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Current share of pipeline gas and LNG in the EU
Data: Eurogas estimate March 2017
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LNG: characterised by growth
• Doubling of trade in LNG predicted
• Liquefaction capacity in January 2016:301.5 mtpa
• Liquefaction capacity under construction:141.5 mtpa
• More proposed, mainly in U.S. and Canada
• But LNG overcapacity expected to be gone by 2025
Data: IGU 2016 World LNG Report - Info: IEA WEO 2016
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New business conditions in gas trade
• Business models changing:
From: strong, fixed-term relationships between suppliers and a defined group of customers
To: competitive, flexible arrangements and gas-to-gas competition, due to mainly U.S. and East African LNG cargos + unconventional gas
• New trading hubs
• Gradual removal of destination clauses
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IEA New Policies Scenario: demand + production
418458 473 452
0
200
400
600
800
2014 2020 2030 2040
EU demand Prod EEA Prod RF
bcm
Data: IEA WEO 2016
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IEA gas demand forecast in two scenarios
mto
e
Data: IEA WEO 2016
343377 392 376
22% 28%0
100
200
300
400
500
2014 2020 2030 2040 Share '14 Share '40
New Policies 450 Policies
22%
The winners in 450 Policies are renewables (+8%) + nuclear (+5%) in 2040, compared with New Policies
268 = 30% less
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IEA forecast: natural gas imports to the EU - more LNG
LNG:OtherN. AmericaN. AfricaMERF
Pipeline:OtherN. AfricaMENorwayRF
bcm
Data + image: IEA WEO 2016
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The beauty of small-scale LNG
Practical: filling stations can be located on the coasts and inland – even where there are no high-pressure pipelines
Clean: reduces carbon dioxide emissions and other pollutants – can increasingly become renewable
Versatile: trucks, ships, trains
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Small-scale LNG – A reality already today
LNG & LCNG station for natural gas vehiclesBerkel-Enschot, Netherlands
Source: http://www.gnvmagazine.com/eng/noticia-rolande_lng_opens_fifth_lng_fueling_station-4483
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Small-scale LNG – A reality already today
LNG & LCNG station for natural gas vehicles
Over 100 LNG stations in Europe
More than 150 are upcoming and planned
Source: http://lngbc.eu/
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Small-scale LNG – A reality already today
Heavy Duty Vehicles on LNG 400 hp – 1500 km range
Source: NGVA Europe
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Small-scale LNG – A reality already today
First LNG fuelled Ferry - Viking Grace (2013)
Source: http://www.lngworldnews.com/viking-grace-hits-1000-lng-bunkerings-milestone/
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Small-scale LNG – A reality already today
Germany’s first newbuild LNG-powered passenger ferry From Cuxhaven to the island of Helgoland
Source: http://www.lngworldnews.com/germanys-lng-ferry-begins-service/
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Which existing policies are favourable?
Directive for Alternative Fuels Implementation contributes to implementing national plans on infrastructure, including LNG stations
Needed standards for LNG stations are currently being discussed and have been approved by CEN
Communication on the EU strategy for LNG and gas storage points out LNG for maritime and road transport
ADR – Transportation of dangerous goods – allows trucks running on CNG and LNG to transport natural gas
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Which existing policies are favourable?
Air quality – NOx and particulate matter
Diesel gate has increased awareness of NOx
Filters for particulate matter become more and more sophisticated and expensive
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Current and future Sulphur emissions regulations
Source: http://sea-lng.org/lng-as-a-marine-fuel/emissions/
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Which existing policies are favourable?
Connecting Europe Facility projects showed clear EU commitment to the use of LNG via CEF funding
The EC’s proposal to invest €22.1 mln for the development of sustainable and efficient transport and energy, including LNG, has been approved
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Which policy support is still needed?
Funding for natural gas as a fuel - important for the continuous development of the market
LNG should be tax exempt or should benefit from low tax as it is used as a professional fuel contributing tothe achievement of decarbonisation goals
The use of LNG in tunnels should be promoted, not limited
Intermodality – simultaneous use and development of LNG for inland navigation and trucks
Taxation – long-term government plans should support LNG
Need of standardisation of components
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Thank you for your attention!
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Contact details
Av. de Cortenbergh 172
1000 Brussels
BELGIUM
Phone:
+32 2 894 48 48
www.eurogas.org
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