EUROGAS CONTRIBUTION AND VIEWS ON THE GREEN PAPER ON “A EUROPEAN STRATEGY FOR SUSTAINABLE COMPETITIVE AND SECURE ENERGY”.

17 July 2006

Eurogas welcomes the opportunity to respond to the Commission’s Green paper “ A European Strategy for sustainable, competitive and secure energy” and has issued its response to this important document, which it considers a good basis for debate on the main issues affecting the energy market. The three objectives of sustainability, competitiveness and security of supply have to be achieved in a coherent policy framework supported by consistent measures. It is time to take stock of developments and discuss the way forward.

The main message Eurogas wishes to deliver is that, provided the external policy, market and regulatory frameworks are in place to keep Europe an attractive destination for the world’s gas supplies, gas can make a decisive contribution to a sustainable energy future. In a general overview, Eurogas presents its ideas on the way forward, complemented by more detailed answers to specific issues raised on the Green Paper.

Eurogas underlines the importance of achieving the internal energy market while safeguarding security of supply. Immediate priorities should be the implementation of existing directives on the internal energy market and on security of supply. Eurogas stresses the need for significant investments along the gas chain and for diversification of supply routes and production sources. The policy framework should support commercial investment as well as a stable and predictable regulatory approach providing the right incentives. Also European policy should further promote energy dialogues with third countries. Progress on implementing the internal market must be monitored and also there will be added value in
the greater oversight provided for by the newly implemented EU Directive on security of gas supply.

Specifically, Eurogas advocates that

• The follow-up to the Green Paper takes into account the work of ERGEG on regional initiatives. Ways need to be explored of improving the regulatory process.
• European policy should facilitate a diversification of the energy mix with due regard to environmental objectives. All energy options have to be kept open, and the market should determine shares of the different energy forms in primary and secondary use.
• As regards sustainable development, natural gas has an important potential role to contribute towards the challenge of climate change. This should be fully acknowledged in policy aims.
• The gas sector should be fully involved in plans to strengthen the European efforts on energy research