LNG Small scale, large potential World Energy Council Naples 10 May 2017 Beate Raabe Secretary General
Who is Eurogas? Members are 44 companies and associations Wholesale Retail Distribution 2
Led by people who know the business President Vice-Presidents Klaus Schäfer Martin Herrmann (RWE) Annie Krist Edouard Neviaski Uniper Czech Gas Association GasTerra ENGIE Massimo Mantovani Eni David Wells Shell 3
General role of LNG in Europe Alternative to pipeline gas Diversification of supplies Global market and competitive prices Security of supply 4
Current share of pipeline gas and LNG in the EU Data: Eurogas estimate March 2017 5
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 6
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 7
bcm IEA New Policies Scenario: demand + production 800 600 400 418 458 473 452 200 0 2014 2020 2030 2040 EU demand Prod EEA Prod RF Data: IEA WEO 2016 8
mtoe IEA gas demand forecast in two scenarios 500 400 300 200 100 0 377 392 376 343 268 = 30% less 22% 22% 28% 2014 2020 2030 2040 Share '14 Share '40 New Policies 450 Policies The winners in 450 Policies are renewables (+8%) + nuclear (+5%) in 2040, compared with New Policies Data: IEA WEO 2016 9
bcm IEA forecast: natural gas imports to the EU - more LNG LNG: Other N. America N. Africa ME RF Data + image: IEA WEO 2016 Pipeline: Other N. Africa ME Norway RF 10
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 11
Small-scale LNG A reality already today Source: http://www.gnvmagazine.com/eng/noticia-rolande_lng_opens_fifth_lng_fueling_station-4483 LNG & LCNG station for natural gas vehicles Berkel-Enschot, Netherlands 12
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/ 13
Small-scale LNG A reality already today Source: NGVA Europe Heavy Duty Vehicles on LNG 400 hp 1500 km range 14
Small-scale LNG A reality already today Source: http://www.lngworldnews.com/viking-grace-hits-1000-lng-bunkerings-milestone/ First LNG fuelled Ferry - Viking Grace (2013) 15
Small-scale LNG A reality already today Source: http://www.lngworldnews.com/germanys-lng-ferry-begins-service/ Germany s first newbuild LNG-powered passenger ferry From Cuxhaven to the island of Helgoland 16
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 17
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 18
Current and future Sulphur emissions regulations Source: http://sea-lng.org/lng-as-a-marine-fuel/emissions/ 19
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 20
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 to the 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 21
Thank you for your attention! 22
Contact details Av. de Cortenbergh 172 1000 Brussels BELGIUM Phone: +32 2 894 48 48 eurogas@eurogas.org www.eurogas.org 23