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Gas Storage in Europe “Adding security through flexibility”

Date

06 Jul 2009

Gas Storage in Europe

Adding security through flexibility
This paper outlines the EFET position on the role of Commercial storage facilities in Europe. It
presents the current situation regarding access to storage and how Commercial storage can contribute
to the proper functioning of the European gas market. It also considers the security of supply
implications of an optimal storage system, concluding that the ultimate goal should be for all storage in
the EU to be Commercial and with access on a competitive basis.

EFET looks forward to a time when all storage is in a competitive market; until this is achieved it is
important that the EU standard is raised for non-discriminatory third party access (TPA) conditions
for existing storage facilities. We therefore welcome the changes in the new Gas Regulation and Gas
Directive that improve TPA to necessary storage facilities and offer this paper as a guide to the further
structure of the storage market.

Storage has a crucial role to play both in facilitating development of competition and in contributing to security of supply

• New investment is needed in storage across the EU, to be triggered by an appropriate regulatory framework

• Storage should be unregulated unless a consistently applied EU-wide test demonstrates that there is insufficient competition.

• Where storage needs to be regulated there must be clear rules to ensure non-discriminatory access

• Development of competition in all flexibility services, including storage, should improve with enhanced interconnection, better market design and harmonisation overseen in future by ACER.

• We have not seen any evidence that Strategic storage is cost effective, and we are concerned that it could discourage commercial projects.

• Provision of information by all storage operators will need to develop in line with the need to ensure the efficiency and integrity of a competitive market.

to read the complete docuement, click on the link below.

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