Eng M Sura Postrgradualna Praca

TECHNICAL UNIVERSITY KOICE
POSTGRADUAL STUDY SPP- distribcia, a.s.
DIVERSIFICATION OF THE GAS INDUSTRY

AND THE OPTIONS OF ITS DISTRIBUTION BUSINESS
WITHIN THE EUROPEAN UNION
2006
Michal Sura
INTRODUCTION...........................................................................................................5
1.
OBJECTIVE............................................................................................................5
2.
PHYSICAL PROPERTIES OF NATURAL GAS................................................6
2.1.
Higher Heating Value, Depending on the Provenience of Gas..................................................6
2.2.
Fundamental Properties...............................................................................................................7
2.3.
Other Properties............................................................................................................................7
3.
EUROPES NATURAL GAS IMPORT ROUTES...............................................7
3.1.
Analysis of Natural Gas Consumption and Structure of Imports in EU Countries (2006)....9
3.2.
Operating Gas Pipelines.............................................................................................................10
3.3.
Planned Gas Pipelines.................................................................................................................12
3.4.
Import of Liquefied Natural Gas (LNG) to the EU.................................................................15
4.
LIBERALISATION OF THE NATURAL GAS MARKET IN THE EU.........17
4.1.
Liberalisation of the Natural Gas Market, its Instruments and Targets...............................17
4.2.
Long-Term and Short-Term Contracts.....................................................................................18
4.3.
The Influence of Liberalisation upon Long-Term Contracts..................................................19
4.4.
Liberalisation from Viewpoints of Gas Suppliers to the EU...................................................22
5.
THE GAS INDUSTRY IN THE EUROPEAN UNION.....................................23
MEMBER STATES.......................................................................................................23
5.1.
Austria...................................................................................................................................23
5.2.
Belgium..................................................................................................................................25
5.3.
Bulgaria..................................................................................................................................26
5.4.
Cyprus....................................................................................................................................27
5.5.
Czech Republic.....................................................................................................................28
5.6.
Denmark................................................................................................................................29
5.7.
Estonia...................................................................................................................................30
5.8.
Finland....................................................................................................................................32
5.9.
France....................................................................................................................................33
5.10.
Germany................................................................................................................................35
5.10.1.
E.ON Ruhrgas......................................................................................................................37
5.10.2.
RWE Gas.............................................................................................................................38
5.10.3.
VNG.....................................................................................................................................39
5.10.4.
Wingas.................................................................................................................................40
5.10.5.
BEB......................................................................................................................................41
5.11.
Greece.....................................................................................................................................42
5.12.
Hungary.................................................................................................................................44
5.13.
Ireland...................................................................................................................................45
5.14.
Italy.........................................................................................................................................46
5.15.
Latvia.....................................................................................................................................48
5.16.
Lithuania...............................................................................................................................50
5.17.
Luxembourg..........................................................................................................................51
5.18.
Malta......................................................................................................................................52
5.19.
Netherlands...........................................................................................................................53
5.20.
Poland....................................................................................................................................54
5.21.
Portugal..................................................................................................................................55
5.22.
Spain......................................................................................................................................57
5.23.
Slovakia..................................................................................................................................59
5.24.
Slovenia..................................................................................................................................60
5.25.
Sweden....................................................................................................................................61
5.26.
United Kingdom of Great Britain and Northern Ireland..................................................62
CONCLUSION................................................................................................................2
REFERENCES................................................................................................................2
ACRONYMS....................................................................................................................2
LIST OF FIGURES.........................................................................................................2
LIST OF TABLES...........................................................................................................2
Introduction
Natural gas is a source of clean and ecological energy with a great future. While the 20 th
century had been called that of coal, the 21st is likely to be ruled by natural gas. The
estimated natural gas reserves are sufficient to cover the requirements of its global
consumption for more than 100 years. Natural gas is rapidly becoming a global strategic
energy raw material, having already started, in certain countries, edging out other raw
materials, namely coal and oil, although just a few decades ago their positions appeared
virtually unassailable. As a source of energy for the power industry, natural gas has
certain specificities in comparison with coal or oil, for example, its large-scale storage is
not really feasible, resulting in the need to balance consumption with supply; also, it
forms explosive mixtures with air in a certain proportion, which means increased safety
concerns in its transport as well as use; on the other hand, its combustion affects only
minimally the environment. It is exactly this property that renders natural gas one of the
primary global sources of ecological energy.
1. OBJECTIVE
The objective of this work is to analyze the structure of natural gas imports to the
European Union, whether through gas pipelines or in a liquefied form (LNG), to map
the conditions of existing pipelines used to import gas to the EU, and to provide
information about forthcoming gas pipeline projects designed to provide for increased
diversification of natural gas transport routes to the EU.
Analysis of the impacts of natural gas market liberalisation in the EU, along with its
goals and the possible means of obtaining them is another of this studys objectives.
Lastly, the work intends to map the gas industry state in the individual European Union
member countries, to provide statistical information on the consumptions, structure of
ownership of gas network operators, etc.
2. PHYSICAL PROPERTIES OF NATURAL GAS

Since this work is concerned with natural gas as an energy medium, it should provide at
least brief information about some of its physical properties.
Higher Heating Value, Depending on the
Provenience of Gas
There are various sources of natural gas in the European Union market, most frequently
Russian, Algerian, Norwegian, Dutch, British, or other types of natural gas. The higher
heating value (gross calorific value), apart from other factors, is probably the most
important natural gas parameter, characterizing it in the following order depending on
the source location:
Source
Heating value (MJ/m3)
1, Algeria
42,000
2, Norway
39,877
3, Great Britain
39,710
4, Russia
38,231
5, Saudi Arabia
38,000
6, Uzbekistan
37,889
7, the Netherlands
33,320
In addition, some countries - the Netherlands, Belgium, and also Germany - still use
what is called L-gas (low calorific gas), characterized by a high nitrogen content (20 30 %) and by its lower (approximately 22,9 MJ/m3) calorific value. This gas, exploited
mainly in the Netherlands, is also exported to Belgium; an interesting feature of its
distribution in Belgium and the Netherlands is that this low fuel-value gas is transported
by separate (L-gas) pipelines, delivering mainly to households. However, the yields of
Dutch deposits of this gas have been decreasing, therefore the L-gas distribution
network is used to transport high-calorific gas, mixed with nitrogen at such rate that the
resulting blend has the calorific value of L-gas.
Fundamental Properties
The table below shows the usual range of values applying to natural gas. The
composition and heating value of gas is grossly dependent on its provenience (deposit
location):
Parameter
Unit
Value
Volume ratio of methane (CH4)
50 - 98 %
Volume ratio of higher hydrocarbons
0 - 20 %
Volume ratio of carbon dioxide (CO2)
0 - 30 %
Volume ratio of oxygen
0 - 12 %
Volume ratio of nitrogen
0 - 28 %
Density
kg/m3
0.76
Net calorific value of natural gas
kJ/m3
16 000 - 34 145
Other Properties
Density (in liquefied state): 400 kg/m3
Ignition point: t = 650 C
Octane number (in internal combustion engines): 120 130
Gas-liquid phase transition temperature: -162 C
3. EUROPES NATURAL GAS IMPORT ROUTES
The European Union is characterized by absence of major natural gas sources in its
territory; known fields, even in Great Britain who is the EUs largest producer of natural
gas, are being rapidly depleted, to the extent that this country lost in 2006 its net
exporter position and has become a net importer. Thus, obviously, the European Union
will increasingly depend on imports of natural gas. It is transported to the EU either in
gaseous state through gas pipelines, or in a liquefied form, i.e. as LNG. Fig. No. 1 [1]
shows the structure of gas pipelines and LNG terminals in Europe. There is clearly a
very dense pipeline network in Central European states, as opposed to states in
southwestern Europe; however, statistical data on the growing consumption of natural
gas indicate increasing pipeline construction activities in this area. The Scandinavian
gas pipeline network is considerably scantier, which among others relates to the very
low population density in these countries.
Fig. No. 1: Map of gas pipelines and LNG terminals in Europe [1]
Analysis of Natural Gas Consumption
and Structure of Imports in EU Countries

(2006)
Total consumption of natural gas in the European Union countries reached 492.5 billion
cubic metres (bcm) in the year 2006. [18]
The EU gas consumption has been growing at a stabilized rate over the last few years;
e.g. the growth rate between 2004 and 2006 was 1.9 %.
However, certain EU member countries reported increased consumptions in 2006,
notwithstanding economic stagnation, moderate winter conditions in northwestern
Europe and growing oil prices projecting into the prices of natural gas. The growth rates
vary from country to country and from region to region. Spain keeps reporting highest
natural gas consumption growth rates which, between 2004 and 2006, reached 17.7 %
followed with Portugal (12.6 %), Italy (6.9 %) and Greece (6 %), while Finland
reported a decrease by 8.9 %. [18]
Combined import and own production of natural gas in the EU was 493.2 bcm,
exceeding its 2006 total consumption; the difference accounts for deposition of the
surplus in underground gas storage facilities. [18]
The total 2006 consumption of natural gas of all European Union countries was covered
to only 42 % by own EU production. The majority was covered by imports, realized
from Russia (24 %), Norway (14 %) and Algeria (11 %), while the remaining 9 %
represented combined imports from Egypt, Libya, Nigeria, Qatar, Trinidad/Tobago and
Persian Gulf countries.
Thus, the European Union imported approximately 58 % of its total consumption of
natural gas. This percentage is, however, going to grow as the result of the gradually
decreasing production of the largest EU producer, i.e. Great Britain, and of the
permanently growing natural gas consumption of such states as Spain, Portugal, Italy
and Greece.
It thereby appears that the EU will have to import large amounts of gas via pipelines or
LNG carriers in order to accommodate its growing consumption. This considerably
emphasizes the importance of constructing additional transport routes for natural gas.
Operating Gas Pipelines

Russia is the largest exporter of natural gas to the EU countries, supplying to them
mainly through the following pipelines:
Bratstvo
- approximately 80 bcm / year (Fig. No. 2)
Jamal
- approximately 17 bcm / year (Fig. No. 3)
In addition to these two main gas pipelines, Russia exports natural gas to Greece by
pipelines through Romania and Bulgaria, and uses its national transit lines to supply to
the Baltic states of Estonia, Latvia, Lithuania and Finland.
Fig. No. 2: Bratstvo pipeline [2]
10
Fig. No. 3: Jamal pipeline [2]
Algeria exports natural gas to the EU countries through the following pipelines:
Maghreb-Europe
approximately 9 bcm annually (Fig. No.4)
Transmed
approximately 27 bcm annually (Fig. No.5)
Fig. No. 4: The Maghreb-Europe gas pipeline [3]
11
Fig. No. 5: The TransMed gas pipeline [4]
Norway exports natural gas to the EU through the following pipelines [5]:
Europipe I
13 bcm (Fig. No.4)
Europipe II
18 bcm (Fig. No.4)
Norpipe
15 bcm (Fig. No.4)
Zeepipe
13 bcm (Fig. No.4)
Franpipe
15 bcm (Fig. No.4)
12
Fig. No. 6: The Norwegian gas pipelines [5]
Planned Gas Pipelines

Transient failures of supply early in the year 2006 due to problems with the Ukraine as a
transit country accelerated certain decisions, both on the Russian and the EU sides,
regarding the construction of additional transit facilities. In future, Russia will aim for
exporting gas directly to the EU, that is, to avoid construction of gas pipelines through
transit countries (the Ukraine, Poland, etc.). This objective was made clear by the Nord
13
Stream (Fig. No. 7) pipeline project, designed to join - while running under the Baltic Vyborg in Russia with the German city of Greifswald. Its total length will be 1 200 km,
and its initial annual transport capacity of 27.5 bcm will be doubled in the future by a
parallel second pipe, increasing the combined capacity to 55 bcm.
The pipeline will be constructed by Gazprom of Russia, in collaboration with the
German E.ON and BASF companies.
Fig. No. 7: The Nord Stream gas pipeline [6]
The European Union, also endeavouring to diversify its supplies of natural gas,
commenced constructing the Nabucco pipeline, designed to import gas from the
Caspian area to Europe, transiting through Turkey [7]. In its total length of 3 300 km,
Nabuccos design capacity is approximately 30 bcm/year; it is expected that some 17
-20 bcm would be supplied to the Baumgarten hub in Austria, while 8-10 bcm would
remain for the transit countries.
14
The Nabucco gas pipeline [7]

Russia plans to build another gas line, designated Jamal 2, running via Byelorussia (Fig.
No. 8), with 34 bcm annual design capacity.
Fig. No. 8: Jamal 2 [8]
15
Import of Liquefied Natural Gas (LNG)
to the EU
Imports of liquefied natural gas have been growing at a considerable rate, mainly to the
Mediterranean EU countries. LNG already represents 20 % of all natural gas imported
to the EU, and the ratio is expected to potentially increase to 40 % in the year 2010.
Liquefied natural gas is a non-toxic odourless and colourless liquid, causing no
corrosion. Natural gas requires -161C for changing from gaseous to liquid state under
normal atmospheric pressure; the phase transition occurring at this temperature
simultaneously reduces volume to about 1/600 of the initial gas.
To deliver natural gas to the end user in this form, it must pass through the so-called
LNG value-added chain [9]:
1, Exploration/Production
2, Liquefaction
3, Transport
4, Regasification
5, Sales
In practice, the complete LNG chain is presented by the following example: natural gas,
e.g. from an Algerian gas field is first recovered, then transported by pipeline to the
liquefaction centre. Here it must first be pretreated, meaning removal of all
accompanying substances (ethane, propane, butane, carbon dioxide, water, etc.), then
chilled to -161C, which transforms gas into a liquid, i.e. LNG. Next, LNG is pumped
into specially constructed vessels (LNG carriers) with typical capacities around 140 000
m3, for transportation to the destination country. Gas vaporizing while underway is used
to fuel the LNG carrier. Upon arrival in the target terminal, LNG is heated, thereby
changing back to gaseous state, stored in appropriate tanks and thence, after pressure
regulation, released into the supply pipeline networks.
16
Fig. No. 9:
Map of European LNG terminals [10]
Fig. No. 9 shows the highest concentration of LNG import terminals in the
Mediterranean EU states, due to the proximity of Algeria and of other North African
countries also involved in exports of LNG.
As the result of price increases in the global energy markets LNG, a raw material fairly
expensive in the past, has become nearly equivalent to pipeline-supplied gas in the
pricing competition, not lastly because progress in LNG technologies made liquefied
gas gradually cheaper. LNG may be transported to large distance, e.g. from Africa to
America, and frequently remains the only feasible alternative in the transport of gas
from exporter to importer, either due to the absence of a suitable pipeline between both,
or because, although there is a pipeline available, it lacks the necessary vacant capacity.
In such cases transport in the form of LNG will be applied if the necessary LPG
infrastructure is in place. The case of Spain / Algeria is a good example; although both
17
countries are joined by an undersea gas pipeline, the line capacity has long ago ceased
to suffice covering Spains demand for natural gas, hence the additional Algerian gas in
imported by Spain in the form of LNG.
Table 1 shows that, in the year 2006, the European Union countries imported 54.76 bcm
of LNG, almost 20 % of the total import of natural gas to the EU. As regards Spain,
imported LNG covered 72 % of the total gas consumption, compared to 30 % in France
and to 30 % in Belgium.
Spain
France
Belgium
Italy
Portugal
Great Britain
Greece
TOTAL
Tab. No. 1
26.2 bcm
14.45 bcm
5.25 bcm
3.07 bcm
1.87 bcm
3.46 bcm
0.46 bcm
54.76 bcm
Import of LNG to EU countries in the year 2006 [9]
4. Liberalisation of the natural gas market in the EU

Liberalisation of the Natural Gas Market,
its Instruments and Targets
Trade with natural gas has always had its specificities; before the liberalisation process,
the import and distribution of gas in the individual member states was mostly in the
hands of state-owned companies who held monopolies for importing, distributing and
trading with natural gas. Gas was purchased on the basis of long-term take-or-pay
contracts, with the prices of gas fixed to that of oil and calculated with equations
representing business secrets.
The objective of the gas market liberalisation is to create a competitive environment in
the gas market and to establish natural gas as a negotiable commodity with its price
18
quoted at the exchange, targeted to decreases of the price of natural gas in the relevant
EU market.
The legal framework used in the individual steps toward liberalisation of the natural gas
market in the EU represents the European Commission Directives No. 1998/30/EC and
No. 2003/55/EC [11]. Among the multitude of liberalisation objectives, some of the
most important ones are listed below:
- Creation of the single integrated European natural gas market
- Cancellation of the national monopolies in the individual EU countries
- Assurance of Third Party Access (TPA) i.e. non-discriminative access of third parties
to the transfer, distribution and LNG system on the basis of published tariffs
(2003/55/EC, Chapter VI, Article 18)
- Creation of business hubs (spot business centres), as e.g.:
National Balancing Point (NBP), Great Britain
Zeebrugge, Belgium
Bunde/Oude, German/Dutch border
Title Transfer Facility (TTF), the Netherlands - and others
The European Commission Directives No. 1998/30/EC and 2003/55/EC, the so-called
acceleration directives exactly defined the scope of activities of the individual links in
the distribution chain, from producer of natural gas to its end user; another very
significant aspect of these directives is that they separate trade from distribution,
thereby enabling demonopolisation of the natural gas market.
Long-Term and Short-Term Contracts

The take-or-pay (ToP) type long-term contracts [12] commit both the seller and the
buyer into a bilateral monopoly for protracted periods of time, usually 15 - 20 years,
during which both parties have to abide by very precisely defined obligations. Take-orpay contracts require buyers to pay for predefined amounts of natural gas, regardless
whether or not this gas would be actually taken. The risks involved in this long-term
bilateral contract are shared between the buyer - who must bear the risk whether he will
actually be able to sell the contracted volume of natural gas - and the seller, who risks
19
price oscillations during the contract period. This implies that take-or-pay contracts
represent non-anonymous trade wherein the seller and the buyer are, as a rule, mutually
familiar, while short-term and spot trade is very often anonymous, without any special
relationships between the seller and the buyer, accomplished e.g. through a broker in the
commodity exchange.
The question may arise, who is more interested in long-term contracts - whether the
buyer or the seller. From the buyers aspect, the option to purchase gas at spot prices is
very attractive; spot prices of natural gas are frequently lower than those in the longterm contract, and the buyer may spot-purchase the exact - momentarily needed amount of gas. In such situation the buyer has no interest to become involved in
luxurious expensive long-term contracts. There is, however, the problem that the EU
presently has very few spot-trade points with natural gas, hence the buyer must often
rely on his gas deliveries based on long-term contracts.
From the viewpoints of national governments, long-term contracts offer the availability
guarantee of gas supplies, therefore governments are frequently in the position to grant
specific compensations and/or other advantages to private companies who sign longterm contracts.
On the other hand, sellers of natural gas are not quite unambiguous in their viewpoints
regarding long-term contracts; while such contracts are very favourable for providing
many years of financial stability to the seller, they involve a certain amount of concerns
that sellers might, within the liberalisation process, be deprived of their reliable
customers to whom such long-term contracts would bring less advantages.
The Influence of Liberalisation upon
Long-Term Contracts
Liberalisation of the natural gas market in the USA (in the eighties) and in Great Britain
(in the nineties) definitely affected long-term contracts by substantially shortening the
duration of take-or-pay contracts in these markets. Their example actually visualizes the
fact that such steps as demonopolisation of the gas market, third-party access to the
market etc., actually exerts a positive influence upon the natural gas market. [11]
20
Experience in Northern America and in the UK shows that third-party access to the gas
market leads toward competition in the gas market, and that the realization point of that
competition is usually the trade hub - the point where natural gas is negotiable as a
commodity. When there is sufficient liquidity at this trading point, it may be used to
conclude spot sales, forward sales, short-term contracts etc., all of which result in a
price volatility. Price volatility operates, for example, by changing the function of
underground gas storage facilities; while used for the simple storage of gas in the past,
they are now increasingly utilized in order to maximize profits.
A question may arise, what location may become a trade hub. This depends on several
preconditions. The hub must be a place where gas pipelines meet to enable exchanging
of gas carried by them; ideally, the hub should be in the vicinity of an underground
storage facility or a LNG terminal. Also, the rapidity of sales is an important aspect for
the successful conclusion of short-term trade in the hub. Well-balanced demand and
offer in short-term trade is the topmost condition in the correct functioning of a trade
hub.
Importantly, the number of sellers and buyers at the hub must be sufficient to enable
establishing a liquid market where the corresponding demand and offer may be
negotiated rapidly and free of complications. The hub must also be sufficiently large to
prevent individual major transactions from substantially affecting other transactions
realized at the hub.
There are two hub types distinguishable in the liberalized natural-gas market: the
actually physically existing type, e.g. the Henry Hub in Louisiana, U.S., and the virtual
type, as Great Britains National Balancing Point (NBP).
The first hub in continental Europe to start trading in natural gas is the Zeebrugge hub
in Belgium. It is situated in the shore area, at the point of meeting the UK and
Norwegian gas pipelines. There is also a LNG terminal in the city, along with a closely
found underground gas storage facility; and Zeebrugge is connected through the Belgian
pipeline network to pipelines leading to Germany and France. All these pipelines are
interconnected, enabling to physically exchange gas among them.
Other hubs recently in construction are Bunde in Germany, NWE-Hubco, EuroHub BV.
Potential European hub construction locations (Fig. No. 10):
21
Baumgarten in Austria
Lb in Slovakia
Lampertheim at the city of Ludwigshafen, Germany
One hub in southwestern France
Po Valley in Italy
Fig. No. 10: Map of existing and potential European hubs [11]
The objective of liberalisation of the natural gas market in the EU is to introduce a

competitive environment in the market, as the existence of competition establishes
possibilities for reducing the prices of natural gas.
22
Fig. No. 11 shows that the prices of gas actually decrease. The graph in Fig. 11 presents
the development of natural gas prices at the Zeebrugge trading hub. Obviously, until
September 2004, the spot prices of natural gas actually remained below those in the
long-term contracts; thereafter they increased to 6-7 USD/mBTU.
Fig. No. 11: Development of natural gas prices at the Zeebrugge hub [12]
Liberalisation from Viewpoints of Gas
Suppliers to the EU
As already pointed out, liberalisation of the gas market in the EU is aimed at increasing
the competition in the market, introducing the gas to gas type transactions and thereby
exert a downward push on the gas market prices.
Another liberalisation objective of the EU gas market is to transform natural gas into a
negotiable commodity, enabling trade with this raw material on a commodity exchange
similarly to exchanges in the U.S. or in Canada. The price of natural gas is quoted on
23
the floors of both NYMEX (New York Mercantile Exchange, USA) and of the NGX
(Natural Gas Exchange, Calgary, Canada).
Liberalisation of the natural gas market in the EU could attract further suppliers of this
commodity to the EU, whose present access to the EU market is substantially restricted
due to the existence of concluded take-or-pay contracts; the increased number of
suppliers would result in the enhancement of competition in the market on one hand,
and provide for the necessary diversification of natural gas suppliers to the EU.
All three main suppliers of natural gas to the EU - from Russia, Norway and Algeria are state-owned or state-controlled companies. Take-or-pay contracts guarantee for
Gazprom or for Algeria the required financial stability, understandably very suitable
when there is the necessity of spending huge investments in the field of recovery and
distribution of natural gas, although the fact that natural gas prices are tied to oil prices
in these contracts is encumbered with a certain amount of price oscillation risks.
1From their viewpoints, liberalisation of the natural gas market in the EU could also be
favourable by enabling access of Gazprom to new markets in the form of short-term
contracts, for example via the Zeebrugge hub to the natural gas market in Great Britain
which to Gazprom is inaccessible by take-or-pay contracts.
5.
THE GAS INDUSTRY IN THE EUROPEAN UNION

MEMBER STATES
Austria
Population (2006): 8.18 mil. Area: 83 870 km [13]

Total consumption of natural gas in Austria was 8.7 bcm in 2006.[14] In the same year
Austria recovered approximately 1.87 bcm of own gas. [14]
Natural gas participates in the total energy consumption of Austria with approx. 23 %.
Length of gas transit pipelines: 5 400 km, of distribution pipelines: 26 000 km.[15]
24
More than 60 % of the natural gas consumption is imported from Russia, 10.5 %
from Germany, 10.5 % from the Netherlands; the rest is covered by gas from domestic
sources.
International gas pipelines in Austria are owned and operated by 3 companies:
1, TAG, operated by OMV Gas, owned by TAG GmbH (owners: 89 % Eni, 11 % OMV
Gas)
2, WAG, operated by OMV Gas, owned by BOG GmbH (owners: 51 % OMV Gas, 44
% Gaz de France, 5 % E.ON Ruhrgas)
3, MAB, HAG, SOL, Penta West - these pipelines are operated and owned by OMV
Gas.
Natural gas transits through these international pipelines in the approximate annual
volume 45 bcm.
Austrias domestic pipelines are owned and operated by 5 companies: EVN,
Obersterreichische Ferngas, Steirische Gas Wrme, OMV Gas and BEGAS.
In addition, there are 19 gas companies owning and operating regional distribution
pipelines. [47]
The companies OMV Gas and RAG Beteiligungsgesellschaft are Level 1 wholesalers,
providing for import of gas from foreign and domestic sources. They in turn sell gas to
Level 2 wholesalers.
Ownership structure of OMV [46]:
31.5 % IAG (sterr. Industrieholding AG, Austrian state holding company)
17.6 % (International Petroleum Investment Company, Abu Dhabi)
50.9 % free float
http://www.omv.com/portal/01/com/cxml/04_Sj9SPykssy0xPLMnMz0vM0Y_Qj4o3izf
wN7UI9HJ0NnI1cPf08PWIN_R10w9KzdMvyHZUBADckiFG
25
Fig.No. 33: Map of gas pipelines - Austria [46]
Population (2006): 10.36 mil.
Belgium
Area: 30 528 km [13]
Total consumption natural gas in Belgium was approximately 17.550 bcm in 2006 [14].
Natural gas participates in the total energy consumption of Belgium with approximately
27 %. [16]
Length of gas transit pipelines: 3 693 km, of distribution pipelines: 51 117 km. [15]
Belgium imports approximately 15 % from Algeria, 40 % from Norway, 38 % from the
Netherlands and 7 % spot via Zeebrugge. Belgium is a country with a very welldeveloped natural gas infrastructure.
The main high-pressure gas pipelines operator in Belgium is the company Fluxys. The
company Fluxys also operates via its company Fluxys LNG terminal at Zeebrugge,
there was imported approx. 5.25 bcm of LNG through this LNG terminal in 2006.
The company Distrigas purchases natural gas and sells it to distribution companies,
power stations, large-scale industrial buyers, etc. Belgium has some 23 distribution
companies, of which Distrigas is the largest one, with 92 % market share. The
26
remaining 8 % is shared by distribution companies as Gaz de France (5 %), BP Belgium

(2 %), Wingas, etc. [37]
Ownerhip structure of Fluxys:
SUEZ-TRACTEBEL38.46% (33.25% Shares A +5.21% Shares D)
FLUXHOLD 16.75% Shares A
PUBLIGAS 16.62% Shares B
BELGIAN SHELL 16.67% Shares C
16.71% Shares D (5.21% of them held by Suez-Tractebel)FIRST MARKET OF
EURONEXT BRUSSELS
http://www.fluxys.be/pdf/Fluxys-RA2003UK.pdf
Ownership structure of Distrigas:
57.25 % SUEZ
31.25 % Publigas
11.50 % First Market of Euronext Brussels
1 golden share - the Belgian Ministry of Finance
https://www.distrigaz-suez.fr/content/aboutus/investors/shareholders_en.asp
Fig. No. 12: Map of gas pipelines - Belgium [16]
27
Bulgaria
Population (2006): 7.7 mil. Area: 110,912km [13]

The total annual consumption of natural gas in Bulgaria is 3.041 bcm (2006). [14]
Natural gas participates with approx. 14 % in the total energy consumption of the
Bulgaria [19]
Length of gas transit pipelines: 3 638 km, of distribution pipelines: 2200 km. [15]
The Bulgaria imports approximately 85 % of natural gas from Russia and 15 % is own
national production sources.
Cross-country transit and national deliveries of gas in the Bulgaria are carried out by the
company Bulgargaz. Bulgaria is very important natural gas transit country in this corner
of European Union, Bulgaria transported in 2006 to Turkey, Greece and Macedonia
thorugh their transit pipelines 15.2 billion cubic metres.
Ownership structure of Bulgargaz [19]:

100 % Bulgarian state ownership
28
Fig. No. 12: Map of gas pipelines - Bulgaria [13]
Cyprus

Cyprus has practically no network of gas pipelines. The country has been considering
construction of a gas storage facility and a LNG terminal in the Vasilikos area, starting
in 2007. Completion of the whole complex is planned for 2009. [17]
Czech Republic
Area: 78 866 km [13]
The total annual consumption of natural gas in Czech Republic is 9.0 bcm (2006). [14]
29
Natural gas participates with approx. 18 % in the total energy consumption of the Czech
Republic [19] The Czech Republic imports approximately 81 % of natural gas from
Russia and 17 % from Norway; the rest is drawn from own (national) 0.077 bcm
sources.
Cross-country transit and national deliveries of gas in the Czech Republic are carried
out by the company Transgas.
Natural gas is distributed through distribution pipelines by 8 distribution companies:
Jihomoravsk
plynrensk,
Prask
plynrensk,
Severoesk
plynrensk,
Severomoravsk plynrensk, Stedoesk plynrensk, Vchodoesk plynrensk a

Zpadoesk plynrensk. The majority stockholder in six of those is the company
RWE Gas AG.
Ownership structure of Transgas [19]:
100 % RWE Gas AG
Fig. No. 13: Map of gas pipelines - Czech Republic [20]
30

Denmark
Area: 43 094 km [13]
The total annual consumption of natural gas in Denmark is approximately 4.9 bcm
(2006) [14]. Denmark produced some 9.984 bcm in 2006 of natural gas, which to the
Netherlands, to Sweden and to Germany.
Natural gas has an approx. 22 % share in the total consumption of energy in Denmark.
Denmark is the Emus 5th largest natural gas producer with an approx. share of 3.4 %.
Gas in Denmark is distributed by the DONG Energy, HNG, Naturgas Midt-Nord,
Naturgas Fyn distribution companies.
The company DONG Energy produce, buys and transports all natural gas for the Danish
market, and distributes parts of it as well.
Ownership structure of DONG Energy[21]:
72.98% The Danish state
10.88% SEAS-NVE Holding A/S
6.95% SYD ENERGI Net A/S
9.19% Others
According to Danish law, shareholders with less than 5% holdings may remain
anonymous. The shareholders above own more than 5%.
http://www.dongenergy.com/EN/Investor/share/share+holders.htm
31
Fig. No. 14: Map of gas pipelines - Denmark [21]
Estonia
Area: 45 226 km [13]
The total 2006 consumption of natural gas in Estonia was 0.867 bcm [18]. Length of
distribution pipelines is approximately 2 148 km. [15]
Natural gas participates with about 14 % in Estonias total energy consumption, i.e.
similarly to Finland.
Estonia is not a highly-gasified state. The country imports natural gas from Russia and
draws it also from the Inchukalns underground storage facility in Lithuania.
The proportion of natural gas as a source of heating energy produced in central heatand-power plants in Estonia is more than 90 %. Some 20 - 25 % of all thermal energy is
produced in cogeneration units.
Gas pipelines in Estonia are owned and operated by the company AS Eesti Gaas.
32
Ownership structure of AS Eesti Gaas [22]:

37.02 % AOA Gazprom
33.66 % E.ON Ruhrgas
17.72 % Fortum Oil and Gas OY
9.85 % Itera Latvija
1.75 % Other shareholders
Fig. No. 15: Map of gas pipelines - Estonia [22]
Finland

The total annual consumption of natural gas in Finland is 4.6 bcm. [14]
Natural gas participates only with 11 % in Finlands total energy consumption.
33
Neither gasification nor the use of natural gas is at a high level there in Finland. Natural
gas is imported from Russia.
Finland uses natural gas mainly to generate thermal and electric energy in cogeneration
units. Industrial use is also present. Households use gas to a substantially less degree in
comparison with Central European states.
Natural gas is distributed in Finland by 42 local distribution companies. [23]
The main importer and seller of gas in Finland is Gasum, also owning and operating
also the countrys high-pressure gas pipelines.
Structure of owners of the company Gasum:
Fortum Heat and Gas Oy, 31%
OAO Gazprom, 25%
Finnish state, 24%
E.ON Ruhrgas International AG, 20%
http://www.gasum.com/SiteCollectionDocuments/Gasum_vk_06_engl_paino.pdf
Fig. No. 16: Map of gas pipelines - Finland [23]
34
France

The total annual consumption of natural gas in France was 46.7 bcm in 2006. [14]
Natural gas participates in the total energy consumption of France with about 15 %.
France produced approximately 1.15 bcm of gas by recovery from its own fields.
France imported 14.5 bcm of LNG in the year 2006 via its LNG terminals at Fos-surMer and Montoir-de-Bretagne. [9]
The high-pressure gas lines in the length of 31 589 km are owned and operated by Gas
de France; additionally to GdF, transit of gas is operated by two small companies Francaise du Methane and Gaz du Sud-Oest.
76 % of the French population has access to natural gas. Gaz de France has almost 14
million customers in France. Gaz de France has import monopoly for gas to the country.
France is a highly gasified country; its consumption of natural gas has been growing
very dynamically.
There are 23 distribution companies in France operating distribution pipelines, the
dominant of which is Gaz de France (83 %), followed with Total (+GSO) (10 %),
Regies (3 %), BP Gas, Norsk Hydro, Distrigaz, etc.
Import structure of natural gas: Norway 31 %, Russia 25 %, Algeria 26 %, the
Netherlands 12 %, Great Britain 5 %.
Ownership structure of Gaz de France [24]:
French State
79.8%
Individual shareholders
17.9%
and institutional investors

Employees
2.3%
35
http://www.gazdefrance.com/EN/upload/documents/public/gdf-ra-gb-pdfnet_1180713961.pdf
Fig. No. 17: Map of gas pipelines - France [24]
Germany
36
The total annual consumption of natural gas in Germany is 92.672 bcm (2006). [14]
Germany recovered about 16.87 bcm of natural gas from own sources in 2006. [14]
Natural gas participates in the total energy consumption Germany with approx. 23 %.
Germany has one of the most-developed natural gas markets in Europe. The following
companies are the main players in Germanys natural gas market (with their market
shares shown in parentheses):
E.ON Ruhrgas (56 %), RWE Gas (16 %), VNG (15 %), Wingas (11 %), BEB (1-10 %).
[37]
Of the total 2006 consumption of natural gas, 16 % was drawn from Germanys own
resources, the rest was imported: 35 % from Russia, 24 % from Norway, 19 % from the
Netherlands, 6 % from Denmark and from Great Britain. [36]
There are more than 17 million natural gas customers in Germany, i.e. some 47 % of its
households are supplied with gas. Coverage shows an increasing trend.
Companies operating the super-regional (Level 1) long-distance network of gas
pipelines have primary access to domestic and imported natural gas in Germany. They
are the companies E.ON Ruhrgas, VNG, BEB, Wingas and RWE Gas, supplying gas to
end users on one hand and to Level 2 companies (who have no direct access to domestic
and imported natural gas) on the other hand. The Level 2 companies deliver natural gas
directly to end users, as well as to 700 regional and local distributors which in turn
supply directly to their end users. [36]
Germanys gas pipelines are owned by the companies E.ON Ruhrgas, RWE Gas, VNG,
Wingas and BEB. All of these are privately owned, with own transit pipelines covering
the whole territory of Germany (Fig. No. 25).
37
Fig, No. 25: Map of gas pipelines - Germany [35]
5.10.1.
E.ON Ruhrgas
EO.N Ruhrgas has an approximately 56 % share in the German natural gas market. Its
super-regional pipeline network is 11 200 km long, including 16 joint-venture pipelines.
The map (Fig. No. 26) shows that these pipelines cover mainly the territory of
southwestern Germany. [15] [38]
38
Fig. No. 26: Map of gas pipelines - E.ON Ruhrgas[38]
5.10.2.
RWE Gas
RWE Gas has an approximately 16 % share in the German natural gas market. Its
pipelines are concentrated in the central and Western part of Germany. The length of
RWE Transportnetz GmbH pipelines is 6 800 km, including 9 secondary networks. [35]
39
Fig.No. 27: Map of gas pipelines - RWE Gas[35]
5.10.3.
VNG
VNG is a privately owned company, operating on the territory of the formed GDR. Its
share in the German natural gas market is about 11 %. The map shows (Fig. No. 28) that
the VNG pipeline network is situated in northwestern Germany. The length of the transit
gas pipeline network of ONTRAS VNG Gastransport GmbH exceeds 7 000 km. [39]
40
Fig. No. 28: Map of gas pipelines - VNG [39]
5.10.4.
Wingas
Wingas has an approximately 11 % share in Germanys gas market. It has pipelines

covering the whole territory of Germany in the approximate length 2 000 km. [40]
The company is a joint venture between the Russian Gazprom and the German
Wintershall company, which is a BASF Group member.
41
Fig. No. 29: Map of gas pipelines - Wingas [40]
5.10.5.
BEB
BEB is the largest producer of natural gas in Germany. It operates a high-pressure gas
pipeline in the length of about 3 100 km, situated in northern Germany and able to
separately transport high,- and low-calorific natural gas. In addition, BEB operates also
underground gas storage facilities in northern Germany.
42
Fig. No. 30: Map of gas pipelines - BEB[41]
Greece

The total annual consumption of natural gas in Greece is approximately 2,78 bcm. [14]
Natural gas participates with about 8 % in the total energy consumption of Greece.
Length of gas transit pipelines: 961 km, of distribution pipelines: 2 751 km. [15]
Greece imports natural gas mainly from Russia via the Bulgarian transit pipeline, and
imports additional Algerian (liquefied) gas by LNG carriers. The LNG terminal is
situated at the uninhabited island of Revithoussa close to Athens.
Greece imported 0.455 bcm through LNG terminal in Revithoussa in 2006.
Greece was the last among the EU states to start constructing natural gas distribution
pipelines. Distribution of natural gas commenced in Greece 10 years ago.
43
Greece is the state of most dynamically developing gas infrastructure among all EU
countries. The Greek government declared that all newly constructed power plants in
the country will produce electricity with the use of natural gas.
Natural gas is used in Greece for heating and in the industry; less than 1 % of the Greek
households has access to gas. Natural gas is distributed in Greece by regional gas
companies.
The company DEPA, additionally being the main importer and seller of natural gas, is at
the same time sole owner and operator of the national gas distribution system. DEPA
has exclusivity for sale of natural gas to major customers annually buying more than a
certain limit. [25]
Ownership structure of DEPA[26]:
65 % The state of Greece
35 % Hellenic Petroleum SA
44
Fig.No. 18: Map of gas pipelines - Greece [26]
Hungary

Total consumption of natural gas in 2006 in Hungary was 13.6 bcm. [14]
Hungary recovered some 2.84 bcm of gas from own fields in the year 2006. [14]
Natural gas participates in the total energy consumption of Hungary with about 43 %.
45
Approximately 80 % of imported natural gas is of Russian provenience, the rest

represents imports from Western Europe.
Hungary distributes natural gas via pipelines of the following six distribution
companies: Fgz, Tigz, Dgz, Ddgz, Kogz and Egz. All of these companies were
privatized by RWE, E.ON Energie, Ruhrgas, Eni and GdF [32].
MOL Natural Gas Supply is an important company operating in the regulated wholesale
gas market; it sells natural gas to the aforesaid 6 companies. The company MOL Natural
Gas Supply is owned to 100 % by E.ON Ruhrgas.
Gas pipelines are owned and operated by MOL Natural Gas Transmission Plc.
Ownership structure of MOL [33]:
36.4 % Foreign investors (mainly institucional)
10 % OMV
9.2% OTP
8.2 % BNP Paribas
5.5 % Magnolia Finance ltd.
5.4% Bank of Austria
15 % Domestic institutional inverstors
2 % Domestic private inverstors
8.3 % MOL NyRt. (treasury shares)
http://www.mol.hu/en/about_mol/investor_relations/ownership_structure/
46
Fig. No. 24: Map of gas pipelines - Hungary [33]
Ireland

The total consumption of natural gas in Ireland was approximately 4.78 bcm in 2006.
[14]
Natural gas participates with almost 30 % in the total energy consumption of Ireland.
Ireland produced from their natural gas fields approx.0.49 bcm of natural gas in 2006.
Ireland has its own sources of natural gas which, however, cover the countrys total
requirements to only 15 %; the remaining 85 % of natural gas represents import from
Great Britain via undersea pipelines.
Approximately 59 % of natural gas is used for electricity and heat production, while
some 24 % is for industrial use.
Ireland is not a EU country with substantially developed distribution infrastructure of
natural gas; gas is only available in major cities.
47
Natural gas in Ireland is purchased, sold and distributed by the company Bord Gais,
who is also the owner and operator of Irish gas pipelines.
Ownership structure of Bord Gais [28]:
100 % The state of Ireland
Fig. No. 20: Map of gas pipelines - Ireland [29]
Italy

Total natural gas consumption: 82.3 bcm (2006). [14] Italy produced own gas in the
volume 10.7 bcm in 2006. [14]
Italy imported 3.072 bcm of LNG through La Spezia LNG terminal in 2006.
48
Natural gas participates approx. 36 % in the total energy consumption of Italy.

Italian high-pressure gas pipelines are owned and operated by the company Snam Rete
Gas, part of the ENI Group. The Snam Rete Gas gas shipping network is 30 712 km
long, subdivided into the national (length: 8 392 km) and regional (22 320 km) gas
pipeline systems.
Russian import represented 29 % in the total annual natural gas consumption in Italy,
followed by Algerian (25 %) and Dutch (10 %) gas. The combined imports of gas from
other countries amounted to 16 %, while the exploitation of Italys own resources
covered 13 % of the national consumption.
Italy imports natural gas z Algeria via Transmed, the Mediterranean gas pipeline with
the annual transit capacioty of 27 bcm of gas. Italy also imported 2.5 bcm LNG in the
year 2006. [9]
ENI and its subsidiaries (Snam Rete Gas, Stogit and Italgas) control about 70 % of
import, 88 % of production and 96 % of shipping of gas. The end-user market is
controlled by them to approximately 50 %.
Further Italian companies competing with ENI in the import and shipping of natural gas
to major users and distribution companies are Edison, Enel, Plurigas, Hera, Energia, BP,
etc.
Structure of ownership - ENI [57]:
62.69% Shareholders from Italy (Ministry of Economy and Finance included)
3.51% Shareholders from UK and Ireland
12.69% Shareholders from other EU member States
8.57% Shareholders from U.S.A. and Canada
49
3.38% Shareholders from the rest of the World

8.41% Treasury shares purchased at the dividend payment date
0.75% Number of shares for which communication has not been received n.d.
http://www.eni.it/en_IT/company/corporate-governance/shareholders/shareholdersstructure.shtml
Fig. No. 39: Map of gas pipelines - Italy [57]
Latvia
50
Total 2006 consumption of natural gas in Latvia was 1.4 bcm [18]
Natural gas participates with 32.4 % in the total energy consumption of Latvia.
Latvia is a country with a high degree of household gasification. Some 400 000
households have access to natural gas. Approximately 36 % of natural gas is used to
produce electricity, about 25 % for heating, while industrial consumption is responsible
for 24 % annually.
Natural gas is purchased, sold and distributed by the company Latvijas Gaze.
Also, the Latvian gas pipelines are owned and operated by Latvijas Gaze.
Ownership structure of Latvijas Gaze:
"E.ON Ruhrgas International AG" 47,2%
OAO Gazprom 34,0%
SIA Itera-Latvija 16,0%
Other shareholders 2,8%
http://www.lg.lv/pub/default.php?lapa=3&oid=96
51
Fig. No. 22:
Map of gas pipelines - Latvia
Lithuania

Total consumption of natural gas in Lithuania was 2.9 bcm in 2006 [18]
Natural gas participates with 28 % in the total energy consumption of Lithuania.
Lithuania is a country with fairly high level of gasification and use of natural gas. Gas is
imported to Lithuania 100 % from Russia.
Approximately 52.2 % of natural gas is used to produce thermal and electric energy,
26.4 % for production of industrial fertilizers, and 11.8 % used in the general industry.
Natural gas is purchased, sold and distributed in Lithuania by the company LIETUVOS
DUJOS.
Ownership structure of Lietuvos Dujos [30]:
52
38,9 % E.ON Ruhrgas

37,1 % OAO Gazprom
17,7 % State Property Fund
6,3 % Other shareholders
http://www.dujos.lt/en.php/investors_relations/shareholders/724
Fig. No. 21: Map of gas pipelines - Lithuania [30]
Luxembourg

Total consumption of natural gas in Luxembourg was 1.4 bcm in 2006 [14]
Natural gas participates in the total energy consumption of Luxembourg with
approximately 18 %.
Length of the gas transit pipelines: 320 km, of distribution pipelines:1 750 km. [15];
53
The main importer and shipper of gas in Luxembourgs high-pressure gas pipelines is
the company SOTEG.
Luxembourg imports natural gas from Belgium (Distrigaz), France (Gaz de France) and
Germany (Ruhrgas).
SOTEG supplies natural gas to four local distribution and industrial companies.
Ownership structure of SOTEG [31]:
21 % The state of Luxembourg
20 % E.ON Ruhrgas
20 % Arcelor
19 % Cegedel
10 % SNCI
10 % Saar-Ferngas
http://www.soteg.lu/mmp/online/website/content/soteg/actionariat/index_FR.html
54
Fig. No. 23: Map of gas pipelines - Luxembourg [31]
Malta
Population (2006): 0.4 mil. Area: 316 km [13]

Malta has no natural gas pipelines. Preparation of a feasibility study on the potential
connection of Malta to the Sicilian gas network is in progress. [34]
Netherlands

The total Dutch consumption of natural gas in 2006 was 41 bcm. [14]
The country exported produced 66 bcm of natural gas in 2006.
country.
The Netherlands is the highest - gasified country in the European Union; at the same
time it is the largest exporter of natural gas in the EU. More than 99 % of the Dutch
population has access to natural gas.
In the year 2006 the Netherlands produced 78.8 bcm of natural gas. The Dutch
(similarly to the Belgian) gas distribution system is characterized by the interesting
existence of separate pipelines for high-calorific and low-calorific gas, the latter being
used mostly by households. This L-gas, i.e. natural gas with high nitrogen content, has
the approximate fuel value of 22,9 MJ/m3, as opposed to 34,8 MJ/m3 of the highcalorific natural gas.
55
The Dutch high-pressure gas pipelines are owned and operated by the company Gas
Transport Services B.V., a subsidiary of Gasunie.
Gas Transport Service supplies gas to some 34 distribution companies for distribution in
pipelines all over the country. The largest of these Dutch distribution companies are
Gasunie Trade & Supply B.V. 65 %, Norsk Hydro/Duke 10-20 %, Essent, Nuon, Eneco,
Centrica, Delta, BP, RWE, NRE, Westland, etc. [37]
Ownership structure of Gas Transport Services B.V. [27]:
40% Energie Beheer Nederland (100% Dutch state-owned company)
10% The Dutch state itself
25 % Shell
25% Esso
Ownership structure of Gas Transport Services B.V. [27]:
100 % - the Dutch state (Ministry of Finance of the Netherlands).
http://www.nvnederlandsegasunie.nl/en/news/20050701.htm
56
Fig.No. 19: Map of gas pipelines - The Netherlands [27]
Poland

The total annual consumption of natural gas in Poland was 13.7 bcm (2006) [14], which
included Polands own production in the approximate volume 4.3 bcm (2006). [14]
Natural gas participates in the total Polish energy consumption with some 13 %.[42]
Gas is sold by PGNiG to six distribution companies, supplying about 7 million
customers with natural gas via distribution pipelines. PGNiG is the 100 % owner of all
six of the above companies, namely: Dolnolska Spka Gazownictwa Sp. z o.o.;
Grnolska Spka Gazownictwa Sp. z o.o.; Karpacka Spka Gazownictwa Sp. z o.o.;
Mazowiecka Spka Gazownictwa Sp. z o.o.; Pomorska Spka Gazownictwa Sp. z o.o.
and Wielkopolska Spka Gazownictwa Sp. z o.o. [42]
Poland imports natural gas from Russia and from Norway (approximately 0.5 bcm
annually, i.e. about 3 %).
Ownership structure of PGNiG [42]:
84,75% shares - Polish State Treasury
15,25% shares others
http://www.pgnig.pl/pgnig/ri/751/784/
57
Fig. No. 31: Map of gas pipelines - Poland [43]
Portugal

Total consumption natural gas in Portugal in 2006: 4.4 bcm [14]
Natural gas participates in the total energy consumption of Portugal with approximately
10 %.
58
Portugal has a LNG terminal in the port of Sines, using it to import approximately 1.87
bcm LNG in 2006. The LNG comes from Algeria and Spain.
Owner and operator of the high-pressure gas pipelines is the company Transgs which,
at the same time, acts as the gas importer and trader. Sales and distribution of natural
gas via distribution pipelines are provided by the company Gs de Portugal. Gs de
Portugal has a share in all nine Portuguese local distribution companies: Lisboags,
Portgs, Lusitaniags, Setgs, Tagusgs, Duriengs , Paxgs , Dianagas and Beirags
[44]
Transgs and Gs de Portugal are parts of GALP, the Portuguese holding company
performing business both in the gas and in the oil industries. [45]
Ownership structure of GALP [45]:
ENI S.p.A. - 33,34%
Amorim Energia, B.V. - 33,34%
Banco BPI, SA - 3,99%
Parpblica -Participaes Pblicas (SGPS), SA - 7%
Caixa Geral de Depsitos, S.A. - 1%
Others - 21,32%
59
Fig.No. 32: Map of gas pipelines - Portugal [45]
Romania
Population (2006): 21.6 mil. Area: 238,391 km [13]

The total annual consumption of natural gas in Romania is 10,035
bcm (2006). [14]
Annual production of natural gas was approx. 7,1 bcm.
Romania [19]
Length of gas transit pipelines: 190 km, of distribution pipelines: 13.000 km. [15]
The Romania imports approximately 30 % of natural gas from Russia and 70 % is their
own national production sources.
60
Transit and distribution pipelines of gas in the Romania are operated and owned by the
company Transgaz. There was transported through their 190 km long transit pipelines
18.2 bcm to Bulgaria, Turkey, Greece and Macedonia in 2006
There are three companies, which export natural gas to Romania. The main exporter is
Wintershall (a joint venture between BASF and Gazprom) which supplies
approximately 80% of the imported natural gas.
Gazexport (the export arm of Gazprom, contributes with less than 5% of the imported
natural gas.
A sister company of Cypres based companyImex Oil, Conef signed a new agreement
with Gazprom in 2007, for the delivery of 2 bcm/year in the period 2010-2030. This
would turn Conef into one of the biggest importers on the market.
In 2006, the main five importers accounting for 94% of total imports were:
Distrigaz Sud - 30.6%, E.On - 26.8%, Elcen Bucuresti - 11.1%, Romgaz - 13.9% and
WIEE Romania SRL - 11.2%.
Ownership structure of Transgaz [19]:
75,01% Romania state (Romanian Ministry of Economy and Finance)
14.98% Proprietatea Fund
10% public share capital after Initial public offering on The Bucharest Stock
Exchange in 2007
http://www.intercapital.ro/fisiere_comunicate/transgaz_ipo_raport_en.pdf
http://rbd.doingbusiness.ro/raiffeisen_gas_sector_sept2007.htm
61
Fig. No. 12: Map of gas pipelines - Romania [13]
Slovakia

Total annual consumption of natural gas: 6 bcm (2006). [14]
Natural gas participates in the total energy consumption of Slovakia with about 32 %.
Slovakia produced about 0.08 bcm natural gas from their sources in 2006.
Slovakia is a highly gasified country. Approximately 95 % of its population has access
to natural gas which is, all imported from natural gas is from Russia.
62
The gas transit pipeline is owned and operated by Eustream, which is the division of the
company Slovensk plynrensk priemysel, a. s. (SPP).
Some 80 billion m3 of Russian gas - corresponding to 30 % of the West European
natural gas consumption- transits each year through the territory of the Slovak Republic.
Natural gas is distributed by SPPs subsidiary - SPP - Distribcia, a.s.
Ownership structure of SPP [48]:
51 % The SR Fund of National Property
24.5 % E.ON Ruhrgas
24.5 % Gaz de France
Fig.No. 34: Map of gas pipelines - Slovakia [48]
Slovenia

Total consumption of natural gas in Slovenia was 1.14 bcm in 2006. [18]
63
Natural gas participates with approx. 14.0 % in the total energy consumption of
Slovenia.
Length of gas transit pipelines: 961 km. [15]
The main natural gas importer in Slovenia is the company Geoplin.
Slovenias energy consumption is covered with natural gas to 43 %.
Slovenia imports natural gas from Russia and Algeria.
Ownership structure of Geoplin [49]:
31.4 % - the state of Slovenia
27.3 Petrol d.d., Ljubljana
6.8 Salonit Anhovo, d.d.
6.5 % Ekopur, d.o.o.
6.2 % Energetika Ljubljana, d.o.o.
17.8% other 27 shareholders
4% own share
http://www.geoplin.si/main.asp?MENIID=1400&JEZIK=1&TIP=B
Fig. No. 35: Map of gas pipelines - Slovenia [50]
64
Spain

The total annual consumption of natural gas in Spain is about 36 bcm (2006) [14]
Spain produces approx. 0.08 bcm of natural gas from its sources in 2006.
Spain imported approximately 26.2 bcm of LNG trough its six LNG terminals in 2006.It
makes this country the largest European LNG importer. [9] There are six LNG
terminals, Huelva, Cartagena, Barcelona, Bilbao Bahia De Bizkaia, Sagunto and El
Ferrol.
Natural gas participates in the total energy consumption of Spain with approx. 22 %.
Nearly all high-pressure gas pipelines in Spain are owned and operated by Enagas (96
%); the second-largest Naturcorp (Group Hidrocantbrico) has an only 4 % share.
The total length of high-pressure gas pipelines in Spain exceeds 6000 km, with the
majority of natural gas imported from Algeria. There operate 28 distribution companies
in the Spanish natural gas market.
The largest distributor, and key player in the Spanish natural gas market is the company
Gas Natural.
In the gas sector, a third of clients are in the liberalized sector, accounting for 82.4% of
demand. Gas Natural has 47.6% of the liberalized gas sector, Iberdrola has 16.2%,
Union Fenosa 10.3%, Endesa 6% and HC 3.7%. Other companies, who distribute
natural gas in Spain are BP, Shell, Hidrocanta, Edison, etc.
http://www.datamonitor.com/companies/company/?pid=DEC18909-8064-4CF2-B6963ADE4F16ABCB&nid=CBA24C6C-EB11-43F3-B17969CE4BB287A6&type=CommentWire&article=1
Spain imports natural gas from Algeria - 62 %, Norway - 11 %, Qatar - 10 %, Nigeria 7 %, Oman - 4 %, others - 6 %. [54]
65
Ownership structure of Gas Natural:

Name of the Shareholder
Direct Participation
Criteria Caixacorp,S.A.
Indirect Participation
30.003%
Total
0.000 %
30.003%
Caja de Ahorros y Pensiones de Barcelona 0.000%
30.029%
30.029%
GENFINA, S.A.
5.752%
0.000%
5.752%
Holding de Infrastructuras S.A.
5.000%
0.000%
5.000%
REPSOL YPF, S.A.
24.230%
6.617%
30.847%
SUEZ, S.A.
0.413 %
10.889%
11.302%
http://www.gasnatural.com/servlet/ContentServer?gnpage=3-10-1&centralassetname=310-BloqueHTML-6
Ownership structure of Enagas [54]:
50 % open-market shares
25 % Gs Natural
25 % companies distributing natural gas
66
Fig. No. 37: Map of gas pipelines - Spain [58]
Sweden

The complete Swedish consumption was 1.141 bcm of natural gas in 2006, which was
imported from Denmark. However, gas covers only 2 % of Swedens total energy
consumption.
Length of gas transit pipelines: 530 km, of distribution pipelines: 2 000 km. [15]
The three main players are Nova Naturgas AB, Dong Sweden AB and E.ON Sverige AB
67
Nova Naturgas is a natural gas network operator and owns a major portion of the
Swedish natural gas network(in southwestern Sweden).
Their clients are the
distribution companies and other network owners.

The main natural gas distributor in Sweden is the Dong Sweden is a subsidiary of the
Danish Dong A/S. Even Dong owns a part of the Swedish network and their clients
include wholesalers, retailers and end users of natural gas.
E.ON Sverige AB transports and sells natural gas to end users and retailers, and even
uses natural gas for its own consumption. The company accounts for approximately
70% of natural gas sales in the wholesale market and almost 50% of the retail sales.
43 % of natural gas is used to produce heat in municipal heat-and-power plants, the
industry consumes 40 %, and the population with the commercial sector 17 %.
Ownership structure of Nova Naturgas AB [56]:
E.ON Ruhrgas International AG 29.6 %
Statoil ASA 29.6 %
DONG A/S 20.4 %
Fortum Heat and Gas Oy 20.4 %
68
Fig. No. 38: Map of gas pipelines - Sweden [55]
United Kingdom of Great Britain and
Northern Ireland
The total annual consumption of natural gas in the UK is 96.5 bcm (2006). [14]
Great Britain produced 85.73 bcm of natural gas from own fields in 2006. [14]
Natural gas participates in the UKs total energy consumption with approximately 38 %.
From natural gas utilization viewpoints, Great Britain is one of the most-developed EU
countries. Before 2006, the country had been the topmost gas consumer within the
European Union; it was only overtaken in the year 2006 by Germany.
The company National Grid Gas, member of National Grid plc., owns and operates the
National Transportation System (NTS) high-pressure gas pipeline network. NTS
69
supplies gas to the following 5 companies owning and operating the countrys system of
distribution pipelines: Transco UK Distribution; Scotland Gas Networks Ltd.; Northern
Gas Networks Ltd; Southern Gas Networks Ltd.; and Wales and West Utilities Ltd.
These five companies, along with Transco UK Transmission, are the main licensed
shippers of natural gas in Great Britain. [53]
Transco receives natural gas for the NTS system in six shore terminals in the UK and
hands it over to the aforesaid 5 distribution companies which, in turn, sell gas to about
70 suppliers of more than 21 million industrial/commercial clients and households. [52]
The gas pipeline system of Great Britain is linked up to the European gas pipelines via
the Interconnector gas pipeline in Belgium.
After 2000, Great Britain, previously a net exporter, has become net importer of gas.
In the year 2006 the country imported 0.5 bcm LNG through its new LNG terminal on
the Isle of Grain.
Ownership structure of National Grid [51]:
Shares of National Grid are quoted as NG on the London Exchange.
Major Shareholders:
Legal & General Investment 4.12 %
Fidelity
3.06%
Other shareholders
92.82%
http://www.nationalgrid.com/corporate/Investor+Relations/majorshareholdings/
70
Fig. No. 36: Map of gas pipelines - United Kingdom [52]
CONCLUSION
71
Natural gas is transported to the EU by gas pipelines or by watercraft specialized for

transport of liquefied natural gas (LNG carriers). Russian natural gas is imported to the
EU mainly through the Bratstvo and Jamal pipelines; Norwegian gas through Europipe
I, Europipe II, Norpipe, Zeepipe and Franpipe; Algerian through the Transmed and
Maghreb-Europe pipelines, running under the Mediterranean. LNG is primarily
imported by Mediterranean EU countries, e.g. by Spain, France and Portugal, but also
by Belgium and the UK. Algeria, Nigeria, Egypt and Libya are the main LNG exporters
to the European Union.
The prepared construction of new gas pipelines - Nord Stream, Jamal 2, Nabucco and
others - should provide for larger diversification of the import routes of natural gas to
the EU.
Total consumption of natural gas in the EU countries reached 493.2 bcm in 2006. [18]
Own recovery yielded 42 % of the Unions total consumption, 24 % has come from
Russia, 14 % from Norway, 11 % from Algeria, and 9 % from Egypt, Libya, Nigeria,
Trinidad-Tobago and other states. [18]
The accepted EU legislation (European Commission Directives No. 1998/30/EC and
No. 2003/55/EC) commenced liberalisation of the natural gas market in the EU states.
It should be attained e.g. by enabling access to the natural gas transport network to third
persons (TPA Third Party Access), by demonopolisation of the natural gas market in
the individual EU states, by enabling selection of the natural gas supplier, by
establishing trade points (hubs) providing for the implementation of spot sales,
conclusion of short-term contracts, etc.
The already concluded take-or-pay contracts represent a major obstacle in the spot gas
trade, as they, save for exceptions (the take-or-pay Gazprom-ENI contract), do not allow
natural gas to be reexported to third countries. It is estimated that up to 90 % of natural
gas in the EU market comes from take-or-pay trade. However, sufficient liquidity of the
spot market requires that it is entered by as many suppliers of natural gas as possible.
Russia has oil companies supplying natural gas as well which, e.g. LUKOIL, Northgas,
Rosneft, Surgutneftegaz and others, would be in the position to deliver gas to the
European Union on the basis of spot trade or short-term contracts, but cannot do so
because Gazprom has exclusivity for exports of Russian gas. A similar situation exists
72
in the export of natural gas from Norway and Algeria; gas is exported by state
companies also having monopolies for natural gas. Gazprom could, however, realize
spot trade with natural gas to supply countries not supplied on the basis of take-or-pay
contracts, e.g. to Great Britain.
The Zeebrugge (Belgium) hub is a natural gas trading point where spot or futures trade
transactions are concluded, along with short-term contracts. Long-term statistics of
trade in this hub show that the price of natural gas sold in this hub is generally below
the price in take-or-pay contracts.
The existence of more similar hubs in the European Union could increase competition
in the natural gas market, similarly to other places worldwide where spot transactions
are routinely concluded, for example the Henry Hub (Louisiana, USA) or the National
Balance Point (NBP) in Great Britain, and others. The fact that 7 % of the total annual
Belgian consumption of natural gas was purchased in the Zeebrugge hub confirms the
real functioning of spot transactions at a very acceptable level in that point.
By way of conclusion, I have attempted to briefly map the gas industry situation in trhe
individual countries of the European Union, to publish statistical data on the total
consumption of natural gas, lengths of gas pipelines, ownership structure of the gas
pipelines network operators, maps of pipelines, and other information. These data
enable comparing developments in the gas industry in the individual EU countries, the
gas market liberalisation situation, etc.
73
REFERENCES
[1] www.eurogas.org
[2] http://eng.gazpromquestions.ru/
[3] www.galpenergia.com
[4] Mark H. Hayes: Algerian gas to Europe: The Transmed Pipeline and Early Spanish
Gas Import Projects (www.rice.edu/energy/publications/docs/ GAS_TransmedPipel
ine.pdf)
[5] Norvegian Petroleum Directorate Pipelines and land facilities
(http://www.dep.no/filarkiv/152181/Facts_17.pdf)
[6] http://www.nord-stream.com/eng/
[7] http://upload.wikimedia.org/wikipedia/en/5/59/Nabucco_pipeline.png
[8] http://www.osw.waw.pl/images/gasMap.jpg
[9] Sophia Rster, Anne Neumann: Corporate Strategies along the LNG Value Added
Chain - An Empirical Analysis of Determinants of Vertical Integration (http://www.
tu-dresden.de/wwbwleeg/publications/wp_gg_17_ruester_neumann_LNG_vertical_
integration.pdf)
[10] http://www1.rwecom.geber.at/factbook/en/servicepages/downloads/files/gas_dow
nstream_rwecom_fact06.pdf
[11] Anne Neumann, Boriss Siliverstovs, and Christian von Hirschhausen: Convergence
of European Spot Market Prices for Natural Gas? A Real-Time Analysis of Market
Integration (http://www.tu-dresden.de/wwbwleeg/publications/wp_gg_11_neuman
n_siliverstovs_convergence_european_spot.pdf
[11] Sylvie Cornot-Gandolphe: Natural Gas Market Liberalisation: A New Context For
Flexibility (http://data.iea.org/ieastore/assets/products/eptnotes/feature/4Q2002B.pdf)
[12] Karsten Neuhoff and Christian von Hirschhausen: Long-Term vs. Short-Term
Contracts: A European Perspective on Natural Gas (http://www.dspace.cam.ac.uk
/bitstream/1810/131595/1/eprg0505.pdf)
[13] http://en.wikipedia.org/wiki/European_Union_statistics#Area_and_population
[14] International Energy Agency, Monthly Natural Gas Survey, July 2006 (http://www.
iea.org/ textbase/stats/surveys/NATGAS.pdf
[15] http://www.eurogas.org/asp/show.asp?wat=2003 %20STATISTICS_opt.pdf
[16] http://www.distrigas.be
[17] http://strategis.ic.gc.ca/epic/internet/inimr-ri.nsf/en/gr121397e.html
[18] Natural Gas Consumption in EU25 in 2006 (http://www.eurogas.org/asp/show.
asp ?wat=06P083 %20-20Press_release_Evolution_Gas_Consumption_2006.pdf)
[19] http://www.rwe-transgas.cz/transgas.cz
74
[20] http://www.unece.org/ie/se/pp/gas/czechrep.pdf
[21] DONG Naturgas A/S Annual Report 2006: http://www.dongenergy.com/NR/ Rdon
lyres/ABECD62D-D6BB-44ED-9C1E-0688CBAC7C3C/0/ AnnualReport DONG
Naturgas2006.pdf
[22] AS Eesti Gaas Annual report 2005: http://www.gaas.ee/public/files/eestigaas_sisu
_inglise2006.pdf
[23] Gasum Annual Report 2006: http://www.gasum.fi/gasumint.nsf/WWWAll/ 037FD
A26450FE85AC2256AC3003B32D8/$File/GASUM_AR2006.pdf?OpenElement
[24] http://www.gazdefrance.com/EN/upload/documents/public/gdf-ra-gb-pdfnet_1180713961.pdf
[25] http://www.acci.gr/trade/No36/TRADE_53_55.pdf
[26] Depa Annual Report 2004: http://www.depa.gr/en/pdf/annual_report_2004_EN.pdf
[27] http://www.nvnederlandsegasunie.nl/
[28] http://www.bordgais.ie
[29] http://www.bordgais.ie/files/20060109102416_5041_gas_bord_gais_ar.pdf
[30] Annual report: http://www.ldujos.lt/admin/files/get.php?id=77
[31] www.soteg.lu
[32] www.hungas.hu
[33] http://www.mol.hu/en/about_mol/investor_relations/
[34] www.parliament.gov.mt/information/Papers/1922(C).pdf
[35] www.rwe.de
[36] http://www2.rwecom.geber.at/factbook/en/servicepages/downloads/files/gas_down
stream_rwecom_fact06.pdf
[37] http://www.unece.org/ie/se/pdfs/wpgas/session/Chabrelie_EGM %20Pres %20Gen
eve.pdf
[38] http://www.iploca.com/cmsFiles/File/P. %20Schwengler %20- %20E.on%20 Ruhr
gas.pdf
[39] http://www.vng.de
[40] http://www.wingas.de
[41] http://www.beb.de
[42] http://www.en.pgnig.pl/docs/raport_roczny_EN_small.pdf
[43] http://www.eurogas.org/database/documents/plan0304.jpg
75
[44] http://www.portgas.pt/main.php?id=219&sub=192
[45] www.galpenergia.com
[46] Annual Report 2006, http://www.omv.com
[47] http://www.freshfields.com/sector/energy/publications/pdfs/Gas2006.pdf
[48] http://www.spp.sk
[49] http://www.geoplin.si/imagesENG/strani/poslovnoporo2006eng.pdf
[50] http://www.geoplin.si
[51] http://www.nationalgrid.com/corporate/Investor+Relations/Shares/
[52] http://www.nationalgrid.com
[53] www.nationalgrid.com/uk/Gas/Connections/domestic/
[54] http://www.enagas.es
[55] http://www.novanaturgas.com
[56] http://www.novanaturgas.com/pub/386/nova_arsred_05.pdf
[57] www.eni.it
[58] http://www.iea.org/textbase/work/2004/brazil/dolader.pdf
[59] http://www.rferl.org/featuresarticle/2006/06/4F4967A8-D804-4661-91D96C121E283C49.html
[60] http://www.rferl.org/featuresarticle/2006/06/7e0be804-ca10-4095-bea66f49b308010e.html
76
ACRONYMS
EU
European Union
degree Celsius
MJ/m3
Mega Joule/cubic metre
kg/m3
kilograms/cubic metre
80 bcm
billion cubic metres
LNG
Liqufied Natural Gas
TPA
Third Party Access
NBP
National Balancing Point United Kingdom
MBtu
million British thermal units
km
kilometre
GDF
Gaz de France
77
LIST OF FIGURES
Fig. No.1. Map of European gas pipelines and LNG terminals [1]................................2
Fig. No.2. Bratstvo gas pipeline [2]................................................................................2
Fig. No.3. Jamal gas pipeline [2]....................................................................................2
Fig. No.4. Maghreb-Europe gas pipeline [3]..................................................................2
Fig. No.5. TransMed gas pipeline [4].............................................................................2
Fig. No.6. The Norwegian gas pipelines [5]...................................................................2
Fig. No.7. Nord Stream gas pipeline [6].........................................................................2
Fig. No.8. The Jamal 2 gas pipeline [8]..........................................................................2
Fig. No.9. Map of European LNG terminals [10]..........................................................2
Fig. No.10.
Map of existing and potential hubs in Europe [11]...................................2
Fig. No.11.
Vvoj cien of natural gas na hube v Zeebrugge [12]................................2
Fig. No.12.
Map of gas pipelines - Belgium [16].........................................................2
Fig. No.13.
Map of gas pipelines - Czech Republic [20].............................................2
Fig. No.14.
Map of gas pipelines - Denmark [21]........................................................2
Fig. No.15.
Map of gas pipelines - Estonia [22]...........................................................2
Fig. No.16.
Map of gas pipelines - Finnland [23]........................................................2
Fig. No.17.
Map of gas pipelines - France [24]............................................................2
Fig. No.18.
Map of gas pipelines - Greece [26]...........................................................2
Fig. No.19.
Map of gas pipelines - The Netherlands [27]............................................2
Fig. No.20.
Map of gas pipelines - Ireland [29]...........................................................2
Fig. No.21.
Map of gas pipelines - Lithuania [30].......................................................2
Fig. No.22.
Map of gas pipelines - Latvia....................................................................2
Fig. No.23.
Map of gas pipelines - Luxembourg [31]..................................................2
Fig. No.24.
Map of gas pipelines - Hungary [33].........................................................2
Fig. No.25.
Map of gas pipelines - Germany [35]........................................................2
Fig. No.26.
Map of gas pipelines - E.ON Ruhrgas[38]................................................2
78
Fig. No.27.
Map of gas pipelines - RWE Gas[35]........................................................2
Fig. No.28.
Map of gas pipelines - VNG[39]...............................................................2
Fig. No.29.
Map of gas pipelines - Wingas[40]............................................................2
Fig. No.30.
Map of gas pipelines - BEB[41]................................................................2
Fig. No.31.
Map of gas pipelines - Poland [43]............................................................2
Fig. No.32.
Map of gas pipelines - Portugal [45].........................................................2
Fig. No.33.
Map of gas pipelines - Austria [46]...........................................................2
Fig. No.34.
Map of gas pipelines - Slovakia [48].........................................................2
Fig. No.35.
Map of gas pipelines - Slovenia [50].........................................................2
Fig. No.36.
Map of gas pipelines - United Kingdom [52]............................................2
Fig. No.37.
Map of gas pipelines - Spain [58]..............................................................2
Fig. No.38.
Map of gas pipelines - Sweden [55]..........................................................2
Fig. No.39.
Map of gas pipelines - Italy [57]...............................................................2
LIST OF TABLES
79
Tab. No.1. Import of LNG to EU countries in the year 2006 [9]....................................2
80

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TECHNICAL UNIVERSITY KOICE

POSTGRADUAL STUDY SPP- distribcia, a.s.

DIVERSIFICATION OF THE GAS INDUSTRY

PHYSICAL PROPERTIES OF NATURAL GAS................................................6

Higher Heating Value, Depending on the Provenience of Gas..................................................6

EUROPES NATURAL GAS IMPORT ROUTES...............................................7

Analysis of Natural Gas Consumption and Structure of Imports in EU Countries (2006)....9

Operating Gas Pipelines.............................................................................................................10

Planned Gas Pipelines.................................................................................................................12

Import of Liquefied Natural Gas (LNG) to the EU.................................................................15

LIBERALISATION OF THE NATURAL GAS MARKET IN THE EU.........17

Liberalisation of the Natural Gas Market, its Instruments and Targets...............................17

Long-Term and Short-Term Contracts.....................................................................................18

The Influence of Liberalisation upon Long-Term Contracts..................................................19

Liberalisation from Viewpoints of Gas Suppliers to the EU...................................................22

THE GAS INDUSTRY IN THE EUROPEAN UNION.....................................23

United Kingdom of Great Britain and Northern Ireland..................................................62

2. PHYSICAL PROPERTIES OF NATURAL GAS

Higher Heating Value, Depending on the

Heating value (MJ/m3)

Volume ratio of methane (CH4)

Volume ratio of higher hydrocarbons

Volume ratio of carbon dioxide (CO2)

Volume ratio of oxygen

Volume ratio of nitrogen

Net calorific value of natural gas

3. EUROPES NATURAL GAS IMPORT ROUTES

Analysis of Natural Gas Consumption

and Structure of Imports in EU Countries

Operating Gas Pipelines

- approximately 80 bcm / year (Fig. No. 2)

- approximately 17 bcm / year (Fig. No. 3)

Fig. No. 2: Bratstvo pipeline [2]

Fig. No. 3: Jamal pipeline [2]

approximately 9 bcm annually (Fig. No.4)

approximately 27 bcm annually (Fig. No.5)

Fig. No. 4: The Maghreb-Europe gas pipeline [3]

Fig. No. 5: The TransMed gas pipeline [4]

13 bcm (Fig. No.4)

18 bcm (Fig. No.4)

15 bcm (Fig. No.4)

13 bcm (Fig. No.4)

15 bcm (Fig. No.4)

Fig. No. 6: The Norwegian gas pipelines [5]

Planned Gas Pipelines

Fig. No. 7: The Nord Stream gas pipeline [6]

The Nabucco gas pipeline [7]

Fig. No. 8: Jamal 2 [8]

Import of Liquefied Natural Gas (LNG)

Map of European LNG terminals [10]

4. Liberalisation of the natural gas market in the EU

Long-Term and Short-Term Contracts

The Influence of Liberalisation upon

The objective of liberalisation of the natural gas market in the EU is to introduce a

Liberalisation from Viewpoints of Gas

THE GAS INDUSTRY IN THE EUROPEAN UNION

Population (2006): 8.18 mil. Area: 83 870 km [13]

Fig.No. 33: Map of gas pipelines - Austria [46]

Population (2006): 10.36 mil.

remaining 8 % is shared by distribution companies as Gaz de France (5 %), BP Belgium

Fig. No. 12: Map of gas pipelines - Belgium [16]

Population (2006): 7.7 mil. Area: 110,912km [13]

Ownership structure of Bulgargaz [19]: