European Federation of Energy Traders
Implementing the 3rd EU
Energy package
Colin Lyle,
EFET Gas Committee Chairman
www.EFET.org
22 September 2009 Brussels
Brussels, 22 September 2009
1
Colin Lyle, EFET Gas Committee
Brussels 22 September 2009
2
Colin Lyle, EFET Gas Committee
Brussels 22 September 2009
3
IMPLEMENTING THE 3rd EU ENERGY PACKAGE
Illustration of the Developing EU Gas Market
Gas
Interconnectors
LNG
I/O
Demand
Regulated, Independent management
I/O
Network Operators
Storage
I
Hub
LNG
I
HP Transmission
LP Distribution
O
Industrial &
Commercial
Customer
Choice of
Suppliers
O
Trading Hubs set
Market Prices
Competing
Residential
Competing Suppliers
Producers
Colin Lyle, EFET Gas Committee
Brussels 22 September 2009
4
IMPLEMENTING THE 3rd EU ENERGY PACKAGE
Removing the barriers to help the market to work
Its an open market,
But I was here first.
Colin Lyle, EFET Gas Committee
Brussels 22 September 2009
5
IMPLEMENTING THE 3rd EU ENERGY PACKAGE
Traded markets are needed for clear price signals
Virtual hub (in-grid
balancing point)
Physical hub ( e.g
border point)
Trading hub with
limited price
transparency
GD
CEGH @
Baumgarten
Huberator @
Zeebrugge
NB. Not all trading
locations are
shown
Colin Lyle, EFET Gas Committee
Brussels 22 September 2009
6
IMPLEMENTING THE 3rd EU ENERGY PACKAGE
Regional markets may provide long-term solutions
E.g. IEA view of possible
gas market development
 Large trading hubs are
needed for sufficient
liquidity.
 Gas takes far longer to
travel than electricity
 High economic cost of
full interconnection
across whole of EU.
 EU gas market will be a
series of ‘pools’ rather
than a ‘copper plate’
 LNG and pipeline gas
need access to
balancing pools
Colin Lyle, EFET Gas Committee
Brussels 22 September 2009
7
IMPLEMENTING THE 3rd EU ENERGY PACKAGE
Some issues to tackle now

Share understanding of the EU gas market design

Clear plans to establish market-based balancing

Improved provision of fundamental data

Multi-system operation (Regional cooperation)

Maximising capacity for market participants

Consistent regulatory approach to x-border investment

Encouraging competitive markets (gas hubs, storage etc...)
Colin Lyle, EFET Gas Committee
Brussels 22 September 2009
8
IMPLEMENTING THE 3rd EU ENERGY PACKAGE
IFIEC Forum - 22 September 2009 Brussels
European Federation of Energy Traders
Tel: +31 (0)20 5207970
Email: [email protected]
www.efet.org
Colin Lyle, EFET Gas Committee
Brussels 22 September 2009
9