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Selling gas in Europe - and getting it there. Jorge Santos Silva Vice President Shell Energy Europe. Setting the scene: Europe is facing a gas supply gap and growing concerns over supply security. BCM . 900. 800. Demand. 700. 600. 500. 400. Contracted Supplies. 300. 200.
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Selling gas in Europe - and getting it there Jorge Santos Silva Vice President Shell Energy Europe
Setting the scene: Europe is facing a gas supply gap and growing concerns over supply security BCM 900 800 Demand 700 600 500 400 Contracted Supplies 300 200 Indigenous Production 100 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: Wood Mackenzie Excludes contract-extensions
Changing environment and competitive landscapePerspective of a pan-European marketer SEE and/or JV Activity Regas capacity rights 2003 2008 Regas capacity development Equity gas production area Shell JV Interest Power Wind Norway Norway UK GasUnie-GTS BEB Storage GasTerra GasTerra BEBTansport BEB Storage UK NL Finpipe Avacon/BEB NL Belgium Fluxys/Distrigas Germany Ukraine VNG/BEB DFTG/BEB Austria Hungary France France ESBi ESBi Italy Spain Turkey Italy Spain Attiki Attiki
Adequate investment in large infrastructure • Long Haul Pipelines: which comes first: molecules or transport? • LNG: in a progressively globalized business balance between value vs cost of optionality • Storage: scarce resource and inadequate development • Interconnectors: adequate development is needed Coordination and co-operations is key
Transparent access to infrastructure • Unbundled TSOs provide for the correct environment • Transport capacity & Interconnectors: • access • harmonised, simplified rules and procedures • adequate easily accessible transparent information • integrated tools • Storage: more flexibility and new products More pragmatic regulation is key
…so what does an infrastructure user need • Sufficient capacity & adequate access for bringing gas to Europe and to transport it within Europe • A simple, transparent process to book capacity • A simple, transparent process to manage capacity • Improved cross-border transport • Harmonisation of gas quality specifications Strong active forward looking SO who works closely together with market players and counterparties on European and regional level
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