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Eurogas is the association representing the European gas wholesale,

retail and distribution sectors. Founded in 1990, its members include

43 companies and associations from 24 countries.

Eurogas represents the sectors towards the EU institutions and, as such,

participates in the Madrid Gas Regulatory Forum, the Gas Coordination

Group, the Citizens Energy Forum and other stakeholder groups.

Its members work together, analysing the impact of EU political and

legislative initiatives on their business and communicating their findings

and suggestions to the EU stakeholders.

The association also provides statistics and forecasts on gas consumption.

For this, the association can draw on national data supplied by its member

companies and associations.

© Eurogas, June 2015 − All rights reserved

Publisher : Eurogas, Brussels

Design and production by www.generis.be

Photos credits : Istockphoto (p.16, p.22);

Shutterstock (p.11, 12, 13, 15, 17, 18, 19, 21, 22);

all other photos are provided by Eurogas


President’s Message 2

Secretary General’s Message 4

25 Years of Key Milestones in the Gas Industry 6

Timeline of Activities 2014-2015 8


Energy Union – What will it mean?

2030 – Path yet to be traced

Wholesale market – Moving closer to completion

Retail market – Decentralisation and customer focus

DSOs – In the spotlight

Energy trading – Ensuring transparency and integrity

Statistics – Providing key data


GasNaturally – Speaking with one voice

Communications activities – Reaching out, building trust

Eurogas Members 30

Executive committee

Secretariat staff

Organisational Structure 31

Eurogas Membership 32




Gertjan Lankhorst,


This annual Activity Report is presented to you in a special year: in 2015

Eurogas celebrates its 25 th anniversary. In the decades that lie behind us,

many things have changed, but the pivotal role of gas has not. On the

contrary, its share of the world’s energy markets has grown. Gas has been

a success story in Europe, despite the recent decline of sales volumes.

In 2014, gas accounted for 23% of Europe’s total energy demand and

I don’t expect that share to change fundamentally any time soon.

Eurogas was founded at the beginning of a new era, shortly after the

fall of the Berlin Wall, when market liberalisation and privatisation had

become the corner stones of Western economic policy. A lot has been

achieved since then, both in the energy market in general and the gas

market in particular. Here, the European Union has proved its worth and

indispensability. The first of three energy legislation packages dates back

to 1998. The first Directive (No. 98/30/EC) concerning common rules

for the internal market in natural gas came into force in that same year.

A year before, the European Commission had published a Communication

on the energy dimension of climate change. This does not only prove the

foresight of the European institutions, it also underlines how difficult

these issues are. Almost twenty years later we are still struggling with

important aspects of them. Since then, the European Commission,

the European Parliament and the Council have agreed on a number of

Directives and Regulations. The Commission has also brought out dozens

of Communications and papers on these very subjects. For instance,

last year saw Communications on energy efficiency and its contribution


Free markets, competition

and a level playing field for

all will remain the best way

to tackle the energy challenges

that lie ahead of us.

to energy security; on the policy framework for climate and energy in the

period 2020-2030; and on a European energy security strategy. The recent

concept of an Energy Union, deals with all of these themes together.

So what’s new, one might think?

Essentially not much. After approximately 50 years of using natural gas in

ever greater quantities, we still are, and will be, largely dependent on gas

to meet our energy needs and consequently to maintain our prosperity for

some time to come. We are facing familiar challenges: managing energy

security while curbing emissions that cause human-induced climate change

and have an impact on local air quality. Although a lot has already been

accomplished, we have only just begun the transition to a fully sustainable

energy economy.

Since its foundation, Eurogas has been closely involved in the debates

surrounding energy transition, particularly, of course, when it has an

impact on the (future) position of gas in the energy mix. This involvement

is based on a firm belief in the benefits of gas, both in economic and

ecological terms and in free energy markets to create cost-efficient

security of supply. In that respect, a lot still has to be done. But the

concern for energy security and climate change should not distract us

from the path we have been on since 1990. Free markets, competition and

a level playing field for all will remain the best way to tackle the energy

challenges that lie ahead of us.





Beate Raabe,

Secretary General

It’s confirmed. The European Council decided that the EU will continue to

work towards lower greenhouse gas emissions (GHGs), more renewables

and higher energy efficiency, at least until 2030 and whatever the

outcome of the global climate talks in Paris in November/December 2015.

The period after 2030 may be more uncertain, but the EU can be relied

upon to continue to build on the two decades of hard work, including

the achievement of a 40% reduction in GHGs, a 27% market share of

renewables and 27-30% higher energy efficiency.

Counting on the commitments of EU Member States, by 2030 the EU

electricity and gas market should be fully interconnected, integrated and

thus secure and competitive. This would be the ideal framework for the

transition to a low-carbon energy system featuring centralised as well as

decentralised energy production, and serving industrial and domestic

customers who will consume, produce and help balance the system

according to their preference.

In power generation and heating, gas can assert a vital balancing role,

backing up renewables in daily and seasonal peak periods. In this context

I would like to draw your attention to the Eurogas video clip “Smart gas:

smart future” which is available on the website.

In transport, gas can compete easily with electricity in cars. It is unbeatable

for heavy-duty trucks, coaches, river barges and ships.


In power generation and

heating, gas can assert a

vital balancing role, backing

up renewables in daily and

seasonal peak periods.

However, this bright future cannot be taken for granted. The Ukraine

crisis has cast doubt on the reliability of rising imports as indigenous

production declines. Therefore, Eurogas and its members need to make

an extra effort to demonstrate the full potential and desirability of using

gas in power generation, heating and transport, now and in the future.

Squeezed economically between subsidised renewables and cheap

coal, gas is faced with this additional challenge. For this reason and to

open up the horizon for long-term measures, such as carbon dioxide

capture and storage, it is important that the price of carbon dioxide

allowances in the EU’s emissions trading system (ETS) will make a

difference in the choice of fuel and that the ETS is revised to that end. It

is also important that emissions trading is not distorted by subsidies

and that the European Commission’s guidelines on State aid are strictly

applied as a minimum. In non-ETS sectors, too, gas must be allowed to

play the role that it deserves in supporting a secure, competitive and

clean energy system.

Eurogas will continue to work with its members and external stakeholders

on forthcoming policy and legislative proposals to achieve a fully

integrated low-carbon energy market. On this occasion, I would like to

thank members, stakeholders and the Eurogas team for their excellent

cooperation over the past year. It has been a pleasure working with you,

and I look forward to further fruitful debate.


25 years of key milestones

in the gas industry

opening up the market for the benefit

of the customer began back in 1998:


The First Energy Package

Directive 98/30/EC of 22 June 1998 concerning common rules

for the internal market in natural gas


The Second Energy Package

Directive 2003/55/EC of 26 June 2003 concerning common rules

for the internal market in natural gas and repealing Directive 98/30/EC


The Third Energy Package

Directive 2009/73/EC of 13 July 2009 concerning common rules

for the internal market in natural gas and repealing the Directives

of 1998 and 2003

ACER established

Regulation (EC) No 713/2009 of 13 July 2009 establishing

an Agency for the Cooperation of Energy Regulators (ACER)

Regulation (EC) No 715/2009 of 13 July 2009 on conditions

for access to the natural gas transmission networks and repealing

Regulation (EC) No 1775/2005

2002 Jean-Marie Devos

takes over as Secretary General.

2010 Jean-François Cirelli,

Vice-Chairman and President

of GDF SUEZ becomes the

new President.

2014 Gertjan Lankhorst, CEO

of GasTerra, is elected President.

improving infrastructure and facilitating

cross-border trade were at the heart of the

following regulatory changes:


Infrastructure Package

Regulation (EU) No 347/2013 of 17 April 2013 on guidelines for trans-European

energy infrastructure and repealing and amending earlier legislation

Projects of Common Interest

Regulation (EU) No 1316/2013 of 11 December 2013 establishing the

Connecting Europe Facility, amending Regulation (EU) No. 913/2010 and

repealing Regulations of 2007 and 2009


1990 Eurogas is established,

replacing the informal grouping

COMETEC-Gas (Committee for

Economic Studies of the Gas Industry),

a Brussels-based union representing

the European gas industry.

Juan Badosa, Chairman of ENAGAS,

becomes the first President of the

newly formed association.

1990 Peter Claus becomes

Secretary General.

other key legislation and communications also

had an impact on the gas sector, these included:


Emissions Trading System

Directive 2003/87/EC of 13 October 2003 establishing a scheme for greenhouse

gas emission allowance trading within the Community and amending Council

Directive 96/61/EC


Emissions Trading System

Directive 2009/29/EC of 23 April 2009 amending Directive 2003/87/EC so as to improve

and extend the greenhouse gas emission allowance trading scheme of the Community


Energy Roadmap 2050

Communication from the Commission


Energy efficiency

Directive 2012/27/EU of 25 October 2012 on energy efficiency, amending Directives

2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC


Climate and energy efficiency

Communication from the Commission “A policy framework for climate

and energy in the period from 2020 to 2030”


Transport Directive 2014/94/EU of 22 October 2014 on the deployment

of alternative fuels infrastructure

2005 Gas Infrastructure Europe (GIE)

established following progressive

“unbundling” within the Eurogas

Secretariat in the lead up to the

Third Energy Package.

2011 Beate Raabe joins

as Secretary General.

2011 Eurogas joins six

other associations to launch

the GasNaturally campaign.

security of supply has always been of

paramount importance for our customers.

but recent events in ukraine have pushed it

higher up the agenda.


Security of Supply

Directive 2004/67/EC of 26 April 2004 concerning measures

to safeguard security of natural gas supply


Regulation (EU) No 994/2010 of 20 October 2010 concerning

measures to safeguard security of gas supply and repealing Council

Directive 2004/67/EC

On the road

to energy union


timeline of activities 2014-2015






19.06 Press release on

“Interruption of Russian

gas supplies to Ukraine:

No immediate impact on

EU customers”

19-20.06 Eurogas General

Assembly in Venice, Italy

20.06 Gertjan Lankhorst

elected new President of


20.06 Press release on “New

Eurogas President: Gas

remains a sustainable fuel”

16.07 Eurogas provides

feedback to the European

Commission (EC) review of

Carbon Capture and Storage

Directive (2009/31/EC)

23.07 EC publishes

Communication on 2030

Framework for climate and

energy policy

31.07 Eurogas publishes

response to EC Consultation

on Emissions Trading System

(ETS) post-2020 carbon

leakage provisions

Gas: the right choice for

heating in Europe published

02.09 European Energy

Forum Debate “Renewables

and gas – the perfect

partners in heating”,

sponsored by Eurogas

15.09 Eurogas publishes

its views on the EC

Communication on European

energy security

01.10 Press release on

“Mild weather reduces

demand in 2014, but gas

remains strong in the

heating market”

13.10 Press release on

“Eurogas urges European

Council to agree a clear

and predictable energy

and climate policy”

13.10 EC publishes

Communication on

“Progress towards

completing the Internal

Energy Market”

24.06 Eurogas workshop

“The role of gas in the

evolution of heating and





16.01 Press release “Eurogas

congratulates ACER on the

revised Gas Target Model”

20.01 Eurogas organises

joint high-level event with


Stability Reserve

20.01 Press release with


Stability Reserve: Europe

needs a strong signal on

carbon price”

22.01 Eurogas publishes

its views on the Energy

Union and Enhancing

Supply Security

03.02 Eurogas Energy

Podium Debate: What will

the European Energy Union

look like?

06.02 Press release on

“Eurogas supports an

Energy Union”

23.02 Joint statement

published with EPIA,


on the Energy Union

24.02 European Parliament

issues press release on

“Environment Committee

backs ETS market reserve,

advocates early start”

25.02 EC issues

Communication on

“A Framework Strategy for

a Resilient Energy Union

with a Forward-Looking

Climate Change Policy”

25.02 EC publishes a

press release on “Energy

Union: secure, sustainable,

competitive, affordable

energy for every European”

25.02 Press release

on “Eurogas applauds

positive moves, yet remains

cautious, as Energy Union

takes shape”

25.02 GasNaturally press

release on “Energy Union a

clear step forward, concrete

action now needed”

27.02 Eurogas Consultation

Response on the future role

of DSOs



12.11 Eurogas publishes its

views on the EU Emissions

Trading System and the

Market Stability Reserve

18.11-26.11 GasNaturally

Gas Week

25.11 Eurogas opening

ceremony of GasVisually

Exhibition in Strasbourg


Eurogas Statistical Report

2014 published

11.12 Eurogas workshop

“Gas – now and in the future”


the right choice

for heating

in Europe



2 14

26.11 Ten European gas

& electricity associations

call for a comprehensive

implementation of the EU

anti-VAT-fraud package by

all 28 Member States





03.03 Eurogas Annual

Conference “The consumer

at the centre of the energy


03.03 “Smart gas: smart

future” animation released

04.03 Eurogas response

on Energy Community


18.03 GasNaturally letter

to Heads of State on six

proposals to achieve a true

Energy Union

02.04 Response to EC

consultation on the review

of Regulation on security

of gas supply

15.04 Eurogas crossassociation

roundtable on

heating for the residential

and commercial sectors

17.04 Joint statement

on MiFID II Level 2 and

energy trading

28.04 Eurogas Position

Paper on Unallocated

Allowances in the

Emissions Trading System

21.05 GasNaturally Gas

in Heating Workshop

02.06 Eurogas response

to EC Mid-Term Review of

White Paper on transport

23.06 GasNaturally

Member States Forum

25-26.06 Eurogas General

Assembly in Berlin, Germany

30.06 Eurogas Position

Paper on a Heating and

Cooling Strategy for Europe

25.03 Press release on

“New Eurogas data confirms

dynamic EU gas market”





Europeans enjoy a

stable gas supply

to heat their homes

and increasingly

fuel their cars.




The Eurogas key principles for Europe’s Energy Union:

1 2 3

Design a cost-efficient,

market-based transition to

a sustainable low-carbon

energy mix, with gas

as a vital element.

Implement and improve

market mechanisms to

deliver security of supply.

Deliver a competitive

energy system that

benefits customers.




What will

it mean?

Eurogas welcomes the Commission’s increased focus on energy issues,

reflected in the European Union initiative in February 2015 after an open

debate. The Energy Union concept supports the objectives of a competitive,

secure and sustainable energy market essential for the health of the European

economy, and the well-being of millions of consumers across Europe.

Gas can deliver affordable,

flexible and efficient solutions

for the benefit of Europe’s


Eurogas in its policy advice

places customers at the

heart of the energy market

The interlocking dimensions of the framework strategy should reinforce policy

in favour of a better functioning market and positive investment climate for

companies. This will make it easier to build the cross-border connections

needed to boost further market integration and regional cohesion, bedrocks

of supply security. At the same time greater cooperation and coordination

among EU Member States will drive the low-energy transition, in which gas

should play a significant role, through effective, market-based instruments

designed on a technology-neutral basis. Therefore Eurogas also welcomes

the assurance that the Emissions Trading System (ETS) will play fully its role

as a technology neutral cost-effective driver for low-carbon investments.

The increased emphasis on innovation in energy systems supports the

development of improved and new products and services for gas customers

in Europe, and should underpin the development of holistic energy

systems, with gas delivering affordable, flexible and efficient solutions.




EUROGAS Policy Areas

An energy union has potential to help

steer a coherent and consistent

implementation of energy policy at

national, regional and European level.

Trust the market.

Market fundamentals

are not only the most

efficient force to secure

supplies but also pave

the way to a low-carbon


Gertjan Lankhorst

Eurogas President

It is important that citizens are at the core of the Energy Union, just as

Eurogas, in its policy advice, places customers at the heart of the energy

market, recognising that they should have the tools and information

enabling them to make energy choices that meet their needs.

The framework strategy implicitly recognises that Europe requires diverse

and resilient gas supplies to optimise overall energy security. Therefore

Eurogas welcomes the policy signals for a more united EU voice in global

energy policy. The objective should be to use global market opportunities

to keep energy affordable and secure, while developing indigenous

and sustainable resources.

In the coming months Eurogas will contribute to the debate on the Energy

Union work programme seeking to ensure that the approaches to security

of supply and sustainability remain essentially market-based, solidarity

does not impair competition or commercial confidentiality, and in external

policy the appropriate boundaries are observed between a diplomatic

framework and business decisions.



Path yet to

be traced

In the past year, the Eurogas Strategy Committee has focused its efforts

on the 2030 framework on climate and energy, which has largely been

embraced by the wider Energy Union package. Now it is therefore a good

time to reflect on the outcome of the European Council’s decision on this

package and consider where it might lead the gas industry in the future.

The framework was a step in the right direction in that it sought to put

the binding greenhouse gas (GHG) emissions target of at least 40% as

the cornerstone of the package. Looking at the three targets forming the

basis of the Council’s decision on the framework, where do we stand now?

A binding EU-wide GHG reduction target of at least 40%,

broken down into national targets

The European Commission (EC) has launched the review of the Emissions

Trading System (ETS) Directive No. 2009/29/EC that will facilitate the achievement

of this new target in the ETS sector. Previous analysis in the Eurogas

Roadmap 2050, published in 2011, demonstrated that this target could be

reached by greater use of gas. For non-ETS sectors, a considerable number

of policy measures in detailed areas will be required to deliver the target.




EUROGAS Policy Areas


By switching all coal power plants

to gas, the EU would reduce its

carbon dioxide (CO 2 ) emissions

by over 400 Mtoe, cutting CO 2

emissions by 10%.


Using liquefied natural gas (LNG)

as a fuel for shipping reduces

sulphur oxide (SO x ) emissions by

99%, nitrogen oxide (No x ) by 60%

and CO 2 by as much as 25%. 1

It is important to acknowledge the significant role that gas can play and

to ensure that one technology is not favoured over another, resulting in a

less efficient outcome. With the eyes of the world on the COP 21 negotiations

in Paris this autumn, we may find Europe strengthening its obligations in

the reduction of GHGs.

Gas can play a key role in

helping Europe to achieve

all three pillars of the

2030 framework for

climate and energy by

reducing GHGs, delivering

energy efficiency and

working together with


Theo Ebels


Chair of the Strategy Committee


Compressed Natural Gas (CNG)

vehicles reduce emissions

by: 97% CO, 25% CO 2 ,

60% No x , 75% non-methane

hydrocarbon. 2

A binding EU-wide target for the market share of

renewable energy sources of at least 27% without

pre-determined national targets

The upcoming review of the Renewable Energy Directive No. 2009/28/EC and

electricity market design are likely to pose some challenging questions for

Eurogas and others to consider, with issues such as capacity payments and

priority dispatch likely to be on the table. The outcome of these elements

of work could determine the success of Europe in achieving its renewables

target. For Eurogas, it will be important that the effect of these pieces of

work does not distort the market, particularly the ETS, inevitably leading

to the need for further interventions in the future.

An indicative EU-wide target for energy efficiency of

at least 27%, to be reviewed in 2020 for an increase to 30%

Energy efficiency has recently received a renewed push and one of the

key challenges for Eurogas will be to articulate how highly efficient

gas-based appliances have contributed and will continue to contribute to

achieving the EU’s objectives on energy efficiency.

Eurogas will continue to contribute actively to the debate on the 2030

framework by setting out the measures it sees for energy efficiency in the

non-ETS sectors such as heating and transport. A key value that gas offers

is that it can help to reduce GHG emissions, deliver on energy efficiency

and partner with renewable energies.

1: GasNaturally “Fast facts cards”.

2: GasNaturally Air Quality 2013 Infographic. Source: The U.S. DoE Alternative fuels & Advanced Vehicles

Data Centre: (International Gas Union: News, views and knowledge on gas – worldwide, 2010 pg. 6).





closer to


The wholesale market in gas improved in 2014, and Eurogas continues to

participate in discussions on the framework conditions, to deliver further


This past year saw the adoption of further binding rules aimed at enhancing

operational cooperation among transmission systems operators (TSOs),

especially the efficiency of cross-border trade. The market worked efficiently

in most of Europe and hub prices continued to converge. It was positive that

there was negligible impact last winter on trading prices, despite concerns

about the tensions between Russia and Ukraine. Therefore, although 2014

did not meet the political goal of completing the internal energy market,

there is a growing confidence in its improving dynamics.

Better cooperation is needed

among TSOs and NRAs to

improve regulatory approaches

and cross-border flows.

Nevertheless, there remains scope for further progress, notably by

further enforcing the Third Energy Package (Directive No. 2009/73/EC),

and the rules in place. In addition, better cooperation among National

Regulatory Authorities (NRAs) is needed in order to minimise inconsistent

regulatory approaches on either side of an interconnection point as this

leads to sub-optimal cross-border flows. Furthermore, capacity at some

interconnection points is expensive relative to trading spreads, raising

questions if more should be done in this area to boost liquidity.




EUROGAS Policy Areas

Diversification of gas supply

sources and routes can benefit

the purchasing power of

European customers. 3

Benefits from the

wholesale market need

to filter down to

customers in the retail

market, and Eurogas is

working hard to make

this happen.

Friedrich von Burchard


Chair of the System

Users Committee

Transporting gas via pipeline

throughout the EU can be up to

20 times cheaper than transporting

the same amount of energy in

the form of electricity. It also

has no visual footprint on the

landscape. 4

The System Users Committee therefore continues to consider longer term

fundamental issues on the transportation model and capacity use,

including stranded costs. The proposed Code on Harmonised Transmission

Tariff Structures for Gas, currently subject to vigorous debate, may provide

some answers, but more may need to be done. The System Users Committee

is ready to engage in further discussions, in the first place to analyse and

identify remaining problems, then to consider how to address them.

Eurogas considers that the revised Gas Target Model (GTM) of ACER, which

occupied the Committee’s attention since autumn 2013 proved a useful

exercise and its recommendations provide a good basis for future market

development. Eurogas supports in particular the GTM’s recognition of

the need for tailored actions to be developed on a cost-efficient basis to

bring markets closer together. Eurogas considers that the GTM, if properly

followed through, will support further necessary cross-border cooperation.

NRAs and TSOs should cooperate more effectively to bring added-value

to the implementation of market legislation.

3: GasNaturally “Fast facts cards” − Gas for competitiveness.

4: GasNaturally “Fast facts cards” − Gas for competitiveness.





and customer focus

Eurogas advocates a robust

competitive market as the best

means to ensure customers’

interests are met, including

the most vulnerable.

A number of drivers are having an impact on

future retail market development, raising issues

that Eurogas is also addressing.

The retail market is evolving quickly and the

Supply and Markets Development Committee is

addressing ways to improve customers’ experience of and trust in today’s

market, as well as challenges that the future energy market will bring.

There is consensus that customers should not only benefit more from

a competitive market as is the case in many Member States today, but

also the policy framework and commercial incentives should enable them

to tailor their energy use more to their specific requirements. A range of

issues needs to be addressed to deliver on these immediate and longer

term objectives. A pre-requisite is that the customer should be able to

choose a supplier in a competitive market. Therefore Eurogas continues

to call for the progressive removal of regulated prices, especially when

they are below cost, as these distort the market. In a functioning market,

customers should have access to quality pre-contractual information,

allowing them to compare offers and enter into well understood contracts.

The Committee engages in dialogue with regulators, customer associations

and other stakeholders to provide input on all related work.




EUROGAS Policy Areas



The city of Lille is currently

running 600 buses on gas.

Eurogas members

recognise that

technological innovation

is allowing consumers

to interact with their

energy in whole new

ways. The liberalised,

competitive market is

the best way to ensure

consumers benefit from

these new opportunities.

Thomas Lowe

Energy UK

Chair of the Supply and Markets

Development Committee


Gas is supplied to over

120 million customers across

the EU-28 through a network

of pipelines which is more than

2 million kilometers long.

The Supply and Markets Development Committee will continue to contribute

to the work of the European Commission that addresses the issues of

customers as market actors, e.g. producers and managers of energy, and

also of vulnerable customers, who are not able to pay their energy bills.

Eurogas continues to advocate a robust market as the best means to ensure

customers’ interests are met.

In addition, Eurogas participates in more technical work on flexible supply

in the energy market, mostly relevant to electricity, but with implications

for gas market development. As consumers become more involved in the

energy market, they may have to deal with increasingly complex commercial

relationships. The framework governing these relationships should be fair,

clear, and balanced.

Eurogas looks forward to participating in the future work on the New Deal

for Consumers, a cornerstone of the Energy Union.



In the


It’s fair to say that the “spotlight” in the energy markets has turned

downstream on the distribution systems operator (DSO) and their future

role in an evolving retail market.

The challenges that the Distribution System Operators Committee worked

on this year can largely be captured by assessing the question – “what role

can the DSO play in facilitating a competitive, innovative and affordable

retail energy market?” A key element of this work was contributing towards

the Eurogas brochure on “Gas: the right choice for heating in Europe”.

As this publication highlighted, the gas industry is keeping pace with

customer choice, notably in the heating sector with new, modern appliances

to meet their needs.

The gas industry is keeping

pace with customer choice,

notably in the heating sector

with new, modern appliances

to meet their needs.

It was a relatively quieter period in terms of European network code

development with work focusing on the Interoperability and Data

Management Code. However, this provided the opportunity for Committee

members to share and review each other’s experiences on implementing

the recently developed Gas Balancing Network Code. This process of sharing

lessons learnt and best practices among Committee members has been a

strong feature of this year’s work, covering a diverse range of topics from

biogas, gas quality, power to gas and many other items.




EUROGAS Policy Areas


Gas is the choice in

the EU for heating

homes and businesses.

Gas emits the least

amount of carbon

dioxide (CO 2 ) when

compared with

heating oil, coal or

liquefied petroleum

gas (LPG).

Using new gas

technology in

heating will save

on energy, reduce

greenhouse gas

emissions (GHG)


The Council of European Energy Regulators (CEER) launched consultations

on both data management and the future role of the DSO, providing an

opportunity for the Committee to find common positions on a range of

topics. In responding to the consultations, the Committee also set out its

views on what a smart energy home means in a gas context.

The groundwork for

many European policy

developments in the

downstream gas sector

has now been prepared

and our Committee has

been actively involvedwe

must continue to

cooperate and collaborate

to find customer focused


Eva Hennig


Chair of the Distribution



The Committee contributed to the work of the Commission’s expert group

on smart grids and to the preparation of reports on both tariffs and integrating

flexibility into the market. It is increasingly clear that the issues in the

downstream sector of the gas industry are similar to those in the electricity

sector, and for this reason, over the past year, the Committee has

strengthened its ties with other DSO associations. The Committee has also

entered into dialogue with many other associations such as the Natural

Gas Vehicle Association, the European Biogas Association and Marcogaz,

to name a few.

With the upcoming Commission Communications on both the retail market,

and the heating and cooling sector, the Committee will focus on setting out

the advantages of gas as a fuel of choice for the consumer, while supporting

these messages with clear evidence of the new and exciting technologies

that are emerging, such as gas heat pumps and fuels cells. We also expect

that even greater cooperation with other partners will be needed, not only

with our supplier colleagues in Eurogas but also transmission system

operators and the wider industry.

The Committee attendance has notably increased in recent months with

new members joining and additional activities to be addressed.

The latest gas-condensing

boilers are over 20% more

efficient than traditional

boilers, while gas heat pumps

are up to 90% more efficient. 5

5: GasNaturally “Fast facts cards” − Gas for a cleaner energy supply.




Ensuring transparency

and integrity

There was a considerable period of preparation,

involving discussions with stakeholders,

following the entry into force of

the Regulation on wholesale energy market

integrity and transparency (No. 1227/2011),

called REMIT, in November 2011, leading up

to the publication of the REMIT Implementing Acts early in 2015. This

secondary legislation provides the framework for monitoring wholesale

markets at European level. The objective is to prevent market abuse, by

providing a reporting system that should identify any problems and allow

for appropriate actions to be taken.

Robust enforcement

and implementation of

REMIT should ensure

transparency and integrity

in the energy markets.

The Transparency and Market Integrity Task Force contributed comments

throughout the process on the draft Implementing Acts and background

documents from the Agency for the Cooperation of Energy Regulators (ACER),

giving advice on a range of related legislative and practical issues with the

objective of ensuring an organised and clear system for market participants.

It is, however, a very complex area of activity, especially as market parties

grapple with understanding the new requirements. Therefore it is important

that ACER is adequately resourced to meet this new area of responsibilities,

to ensure organisational credibility and support trust in the market.




EUROGAS Policy Areas

Open, robust, liquid

and transparent energy

markets, realised by the

integration of networks

and a supportive

regulatory framework,

are key to providing

secure, sustainable

and competitive

energy supplies

to end customers.

Valeria Palmisano


Chair of the Transparency and

Market Integrity Task Force

97 mcm

Robust enforcement and implementation of REMIT should establish

its widespread recognition as the primary framework for ensuring

transparency and integrity in the energy markets. Therefore Eurogas has

separately and in cooperation with other energy associations expressed

its concerns that planned interpretation of provisions in the Markets

in Financial Instruments Directive II (MiFID II) (No. 2014/65/EU) may

trigger unintended and disproportionate consequences for the energy

sector, especially arising from the licensing requirements of MiFID, and

other financial instruments legislation.

Eurogas is concerned that high costs and administrative burden could

discourage market participation, reducing liquidity, and bringing adverse

consequences for the development of competition.

European natural gas storage

working capacity in 2013 was

nearly 97 million cubic meters.





key data



2 14

Increasing diversification of supply, higher concentrations of hub trading

and swift demand-side changes can be very positive signs that gas is playing

its part in achieving the internal energy market. At the same time these

changes pose challenges for statistical analysis in the European energy

market, and offer opportunities for the Statistics Committee to continue to

provide relevant information to our members and stakeholders, as well as

support the Eurogas messages.

In this context, the Statistics Committee is increasing its focus on demandside

data, understanding and conveying the importance of emerging gas

users, and uses. The Forecasting Task Force is also working full steam ahead

to embody the association’s policy messaging and visionary thinking in a

Eurogas Roadmap, set to be published next year. In so doing, numbers are

not just left to themselves, passively. Rather, data is employed to leverage

our messages with strong fact-based support, not only for historical and

present accounting, but for future planning and the development of new




of Europe’s primary energy

consumption in 2013,

roughly the same as in 2012.



2 160

2 102

1 269

1 540 1 551

European stakeholders

are finding it increasingly

difficult to obtain good

data. This only increases

the importance of our

work on statistics here

at Eurogas.

16.2 19.9

2012 2013

1 130

2012 2013

2012 2013

2012 2013

Haris Aliefendic


Chair of the Statistics and

Forecasting Committee

Units: terawatt hour (gross calorific value).

Note: Statistics cover EU28.

Source: Eurogas Statistics Report 2014.


Transport was the highest growth

area for gas in 2013, at an increase

of 18.4%, compared with 2012.


Household, commercial and industrial

use saw meagre growth, while gas use

in the power sector dropped by 12.3%.

of our gas in 2013

was produced in

the EU and Norway.

700 000


of gas in the EU supplies

the residential and the more gas customers


commercial sectors. were connected to

The majority of which the gas grid in 2013,

is used for heating. compared with 2012.

There were

1.1 million

natural gas vehicles in the EU in 2013.


Italy still leads

the way with


of the EU’s fleet of

natural gas vehicles in 2013.


other renewables 13.4

hydro 13.4

nuclear electricity 13.4

0.1 electricity net imports

0.8 others





solid fossil fuels

30 countries

provide Europe’s gas.

The flexibility of gas is

becoming even more robust

with new storage facilities

being completed.

In 2013 +6

New storage facilities have been

added to the EU portfolio.

Our stakeholders are

now reassessing the

future energy system.

Our efforts must

therefore result in

prudent, pragmatic,

and fact-based calls

for action to achieve

our collective aim of

a low-carbon society.

Anne Braaksma


Chair of the Forecasting

Task Force



trinidad tobago 0.5

nigeria 1 libya 1

qatar 5

algeria 8

0.3 peru

0.1 oman

0.1 egypt 0.02 yemen

1 others


indigenous production


In 2013, 14% of the EU’s net

imports was made up of LNG.





45% 55%



GasNaturally objectives for 2015:

1 2

To promote the benefits of gas towards

European Union policymakers by:

emphasising benefits of gas across

end-use sectors (power generation,

heating, transport);

highlighting the benefits of investment

in domestic gas exploration and production

and of the diversification of EU supplies; and

To be a reference point for the

associations’ internal and external

stakeholders for the provision of factual

information and data on all parts of the gas

value chain, and to be a forum to exchange

information between associations on their

communication and advocacy activities.

continuing the dialogue with possible

partners, such as those in the renewable

energy sector, in order to find common ground.


The past year has brought with it a whole new set of challenges in gas

advocacy. The European elections in May 2014 and new MEPs, the

emphasis of the new Juncker Commission on Energy Union and events in

Russia and Ukraine have meant that the gas industry has had to work even

harder to reach out with clear, aligned messages to new stakeholders.


with one


Speaking with one clear industry voice has become even more important

than ever before. Eurogas has therefore continued to cooperate with five

other gas associations representing the entire gas value chain: European

Gas Research Group (GERG), Gas Infrastructure Europe (GIE), the International

Association of Oil and Gas Producers (IOGP), the International Gas Union

(IGU) and Marcogaz.

The GasNaturally initiative, now in its fourth year, was set up to complement

the activities of these associations in advocating the benefits of gas in

our energy mix. This year, the initiative has been particularly active in its

external communications activities.

November 2014, saw the return of Gas Week with the launch in Strasbourg

of the new GasVisually exhibition, hosted by Ms Adina-Ioana Vălean,

Vice-President of the European Parliament. Eurogas Secretary General, Beate

Raabe, presented the keynote speech at the well-attended opening lunch.

A wise man once said

‘gas never sleeps’ –

well the last year has

certainly proved that.

Anton Buijs


Chair of the External

Communications Committee

New videos and an interactive game demonstrating the energy mix helped

decision-makers in the European Parliament to understand the complexities

of balancing energy supply and demand, and the need for all energies,

including gas, to work together to ensure Europe meets its energy and

climate objectives. A series of workshops on subjects such gas and Europe’s

2030 agenda; carbon capture and storage; and gas infrastructure and

security of supply attracted a range of high-level speakers and participants.

As we write, GasNaturally is currently preparing the 4 th Member States’ Forum,

a now well-established annual event that serves to generate debate among

the representatives of Members States. This year’s Forum entitled “Gas for

Europe: Building the Energy Union and Reducing Emissions” will be held in

June and supported by the Latvian Presidency. This flagship event will gather

industry experts, academics and policymakers in Brussels to discuss how gas

can help achieve Europe’s ambitious climate and energy objectives.

Aside from these key events, GasNaturally has also actively promoted the

position of the gas industry through other channels including on Twitter,

through press releases and by issuing a letter to the heads of Member States.

With the increasing focus on downstream issues, GasNaturally turned its

attention to the topics of heating, power generation and gas in transport. A

series of workshops and events will continue to be rolled out throughout 2015.




Reaching out,

building trust

With a new European Parliament and Commission in place by

autumn 2014, Eurogas has placed renewed emphasis on raising

awareness of the benefits of gas among policymakers.

Eurogas stepped up its external communications maintaining the

visibility of gas in the debate with an even spread of activities

throughout the year including: press releases; publications; events; workshops;

interviews; articles; videos; and an increased presence on Twitter. Particular

attention was given to highlight the benefits of using gas for power generation,

domestic heating and transport. Below are some of this year’s highlights.


events organised in the past year

The topic of gas in domestic heating attracted a large audience at the

European Energy Forum dinner debate in the European Parliament, which

was hosted by Eurogas at the beginning of September 2014. Gertjan

Lankhorst highlighted that gas will remain an attractive fuel for heating

because of the cost-effective efficiency gains and emissions reductions it

offers, as well as its flexibility in hybrid technology and in combination with

renewable sources of energy. But he also cautioned against seeking to

displace gas with electric heating in view of the massive investment

required to reinforce the electricity grid, its environmental impact and

public acceptance issues.





© Eurogas, Marcogaz, GERG 2014.


the right choice

for heating

in Europe










Biogas &


Natural Gas

Municipal Waste

Gas Turbine

Gas: The right choice

for heating in Europe

Fuel Cells



Smart Gas: Smart Future


Eurogas used the occasion to launch its publication entitled “Gas: the right

choice for heating in Europe”, which was the culmination of the combined

work of Marcogaz, GERG and Eurogas and seen as a follow up to the successful

workshop held earlier in the year under the European Sustainable Energy Week.

In December, the workshop “Gas − now and in the future” provided the

perfect opportunity to launch the annual Statistical Report 2014, as well as

consider the key role that gas can play in the heating and transport sectors.

Key Commission officials attended to listen to the panel of speakers.

Eurogas kicked off 2015 by hosting its first Energy Podium Debate in which

President Gertjan Lankhorst invited Hans ten Berge of Eurelectric, Ruud Lubbers

the Former Prime Minister of the Netherlands and Markus Beyrer, Director

General of Business Europe to share their views on the concept of energy union.


press releases since June 2014

“The Consumer at the Centre of the Energy System” was the theme of this

year’s annual conference held in early March. Industry experts, academics

and policymakers gathered in Brussels to listen to high-level speakers

discuss effective ways of ensuring consumers feel empowered to make the

right choices. Secretary General, Beate Raabe, unveiled the new Eurogas

animation – “Smart gas: Smart future”, which highlights the important role

that gas can play in an integrated system that benefits customers.

As part of a wider strategy to reach out to new stakeholders, Eurogas held

its first cross-association workshop in April 2015, which brought builders,

plumbers, service providers and manufacturers together with other key

players to debate the issues affecting gas use across the supply chain.

With over 531 MEPs on Twitter, compared to the previous 408, this European

Parliament is more active in social media. Many Commissioners now also

have their own accounts and are tweeting regularly. Twitter is fast becoming

a direct and effective way to communicate with our stakeholders and Eurogas

wants to be part of it. To this end we have also increased our presence in

social media over the last year tweeting key messages and quotes, and

using every opportunity to share our views. As a result the number of people

following Eurogas has increased by over 60% on last year to some 1152

followers, many of them key stakeholders and opinion influencers.

25 000

visitors to the website since

June 2014. The most popular

section is still Statistics.


followers on Twitter


eurogas members

Executive Committee


Gertjan Lankhorst

Chief Executive Officer,


Marco Alverà

Chief Executive Officer,

Eni Trading & Shipping

Chief Midstream Gas

& Power Officer,


Leonhard Birnbaum

Member of the Board

of Management,


Martin Herrmann


Czech Gas Association

Slavko Preocanin


Shell Energy Europe

Secretariat Staff

Beate Raabe

Secretary General

Tim Cayford

Tracey D’Afters

Ramiro Gaete

Kyriakos Gialoglou

Saraine Ifill

Margot Loudon

Noel Regan

Kathleen Sinnott

Philippe Trousson

Katerina Zikmundova

Policy Adviser

Communications Manager

Receptionist & Front Desk Officer, assistant to N. Regan

EU Affairs Director

Assistant to M. Loudon

Deputy Secretary General

EU Affairs Director

Assistant to T. Cayford & T. D’Afters

Administration & Finance Manager

Assistant to B. Raabe & K. Gialoglou

Marion Le Roy left Eurogas in December 2014.

Kyriakos Gialoglou joined Eurogas in March 2015.


organisational structure

Eurogas General Assembly


Executive Committee

Governing Board



General Secretariat

Distribution Committee

Chair: Eva Hennig


Ad hoc expert groups

External Communications


Chair: Anton Buijs


Legal Affairs Committee

Chair: Denis Schlumberger


Supply &

Markets Development Committee

Chair: Thomas Lowe

Energy UK

Strategy Committee

Chair: Theo Ebels


EU-Russia Task Force

Chair: Reiner Hartmann,

E.ON Global Commodities

Heating Task Force

Working Group on Security of Supply

Working Group on Capacity Mechanisms

Chair: Nina Scholz, E.ON

Working Group on 2030 Framework

Transparency &

Market Integrity Task Force

Chair: Valeria Palmisano


Statistics & Forecasting Committee

Chair: Haris Aliefendic


Forecasting Task Force

Chair: Anne Braaksma, GasTerra

System Users Committee

Chair : Friedrich von Burchard


Infrastructure Task Force

Chair: Christophe Miaux, Total

Liquefied Natural Gas Task Force

Chair: Victor Tuñon, Gas Natural Fenosa

Ad hoc expert groups

Taxation Committee

Chair: Michael Längle

RAG Rohöl-Aufsuchungs

Aktiengesellschaft for FGW

Brussels Based Correspondents

Advisory Group


eurogas members

AFG - Association Française du Gaz

8 rue de l’Hôtel de Ville

92200 Neuilly-sur-Seine – FRANCE


Mr Jerôme Ferrier*

DONG Energy

Kraftvaerksvej 53

7000 Fredericia – DENMARK


Mr Morten Buchgreitz*


1 place Samuel de Champlain

Faubourg de l’Arche

92930 Paris La Défense Cedex – FRANCE


Stephane Brimont*


Via Giovanni da Procida 11

20149 Milano – ITALY


Mr Luciano Baratto


Foro Buonaparte, 31

20121 Milan – ITALY


Mr Pierre Vergerio*


Piazzale Enrico Mattei, 1

00144 Roma – ITALY


Mr Marco Alverà*

Axpo Holding

Parkstrasse 23

5401 Baden – SWITZERLAND


Mr Thomas Hesselbarth

EDP Gas Distribuição

Rua Linhas de Torres, nº 41

4350-214 Porto – PORTUGAL


Mr Pedro Ávila

ENOVOS Luxembourg

2, Domaine du Schlassgoard

4327 Esch-sur-Alzette – LUXEMBOURG


Mr Jean Lucius

BDEW - Bundesverband der Energieund


Reinhardtstr. 32

10117 Berlin – GERMANY


Ms Anke Tuschek*

ENA - Energy Networks Association

6 th Floor, Dean Bradley House,

52 Horseferry Road



Mr David Smith

E.ON Global Commodities

Holzstraße 6

40221 Düsseldorf – GERMANY


Mr Leonhard Birnbaum*


47, Petar Parchevich Str.

1000 Sofia – BULGARIA


Mr Petyo Ivanov

ENEL Trade

Viale Regina Margherita, 125

00198 Rome – ITALY


Mr Claudio Machetti*

FGW - Fachverband der Gas- und


Schubertring 14

1015 Vienna – AUSTRIA


Dr Peter Layr*

CPS - Czech Gas Association

Český plynárenský svaz

U Plynárny 223/42

140 21 Praha 4 – Michle – CZECH REPUBLIC


Mr Martin Herrmann*


Lange Houtstraat 2



Mr Hans Alders*


4 th Floor, Gasworks Road



Mr Aidan O’Sullivan


92, Marinou Antypa Ave.

141 21 Heraklion Attikis – GREECE


Mr Spiros Paleoyannis

Energy UK

Charles House – 5-11 Regent Street



Mr Lawrence Slade

Gas Natural Fenosa

Pl. del Gas, 1

08003 Barcelona – SPAIN


Mr Antonio Basolas*



P.O. Box 477

9700 AL Groningen – THE NETHERLANDS


Mr Gertjan Lankhorst*

Lietuvos Dujos

Aguonu˛ g. 24

03212 Vilnius – LITHUANIA


Mr Liudas Liutkevicius

SHELL Energy Europe

80 Strand



Mr Slavko Preocanin*


Miestentie 1 – P.O. Box 21

02151 Espoo – FINLAND


Ms Johanna Lamminen

GAZBIR – Natural Gas Distribution

Companies Association of Turkey

Ege Plaza İş Merkezi

Konya Yolu (Mevlana Bulvarı) No: 182/B

Kat: 22 No:97

06520 Balgat, Çankaya / Ankara – TURKEY


Mr Cem Önal


Cesta Ljubljanske brigade 11

p.p. 3706

1000 Ljubljana – SLOVENIA


Mr Alojz Stana

GERG - the European Gas Research Group

Avenue Palmerston, 4

1000 Brussels – BELGIUM


Mr David Salisbury*


Gladsaxe Ringvej 11

2860 Søborg – DENMARK


Ms Susanne Juhl

Latvijas Gaze

Vagonu Street 20

Riga 1009 – LATVIA


Mr Adrians Davis


Avenue Palmerston, 4

1000 Brussels – BELGIUM


Mr Jean-Claude Weber

Naftogaz of Ukraine

B. Khmelnitskiy St. 6

Kiev 01 – 01001 – UKRAINE


Mr Andriy Kobolev

OMV Gas & Power

Trabrennstraße 6-8

1020 Vienna – AUSTRIA


Mr Manfred Leitner*

PGNiG - Polish Oil and Gas Company

ul. Kasprzaka 25

01-224 Warsaw – POLAND


Mr Slawomir Hinc*

Russian Gas Society

7/5, Lomonosovsky Prospect

119261 Moscow – RUSSIA


Mr Pavel Zavalnyy

RWE Supply & Trading

Altenessener Str. 27

45141 Essen – GERMANY


Mr Wolfgang Peters*

SEDIGAS - Asociación Española del Gas

Plaza Lesseps 33 – Entlo. 3A

08023 Barcelona – SPAIN


Mr Antoni Peris Mingot*

Slovenský plynárenský priemysel (SPP)

Mlynské nivy 44/a

825 11 Bratislava – SLOVAK REPUBLIC


Mr Pierre Poncik*

Swiss Association of Gas Industry

Grütlistrasse 44

P.O. Box 658

8027 Zürich – SWITZERLAND



Ms Daniela Decurtins


Grütlistrasse 44

8027 Zürich – SWITZERLAND


Mr Philippe Petitpierre*


Nymphenburger Strasse 39

80335 München – GERMANY


Dr Gerhard Holtmeier


2 Place Jean Millier

La Défense 6

92400 Courbevoie – FRANCE


Mr Daniel Lauré*

VNG - Verbundnetz Gas Aktiengesellschaft

Braunstrasse 7

04347 Leipzig – GERMANY


Dr Karsten Heuchert*

Eurogas General Assembly Delegates

* Eurogas Governing Board Members



Avenue de Cortenbergh, 172 – B-1000 Brussels

T. +32 2 894 48 48 – www.eurogas.org

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