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Page 1: Draft, not for citation! - TU Dresden · the next decade, mainly in the energy transformation sector. As a consequence of declining indigenous production and increasing demand, import

Analysing the Su�ciency of European Gas Infrastructure - the

Tiger Model

byStefan LochnerDr. David BotheMartin Lienert

Draft, not for citation!

Abstract:

Europe's rising demand for natural gas imports will lead to an increased dependency on thegas infrastructure. Nevertheless, research in this �eld so far lacked a comprehensive modelof the European gas transmission system enabling a full assessment of interdependencieswithin the grid. The Tiger model developed by the Cologne Institute of Energy Economicsin combination with a database containing more than 1000 infrastructure elements allowssuch an analysis. As a dispatch model with monthly resolution, Tiger optimizes the supplyof natural gas to the EU-27 countries plus Norway and Switzerland via the transmission gridusing European production, non-European production injected at border points and LNGimported through regasi�cation terminals. The use of storages further allows intertemporaloptimization. Based on di�erent demand and stress scenarios, the su�ciency of the currentinfrastructure including planned extensions is assessed with a focus on the utilization ofassets, the role of storages and security of supply considerations.

Keywords: Natural Gas, European gas market, modellingJEL-classi�cation: Q41, C61, N74, L95

Contact:Institute of Energy Economics (EWI)University of CologneAlbertus-Magnus-Platz50923 CologneGermanyPhone: + 49 (0) 221 - 170 918 14Fax: + 49 (0) 221 - 44 65 37

Email: [email protected]@[email protected]

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1 INTRODUCTION 1

1 Introduction

The European natural gas market is confronted with a number of challenges over the

next decades. First, gas production within the EU has passed its peak and is declining;

second, demand for natural gas is increasing and is expected to continue to do so for

the next decade, mainly in the energy transformation sector. As a consequence of

declining indigenous production and increasing demand, import dependency will rise.

Currently, the EU's major foreign supply countries are Norway, Russia and Algeria.

The main import routes are long-distance transmission pipelines. Although the next

decade might see a diversi�cation of the supply because of increasing Lique�ed Natural

Gas (LNG) imports and infrastructure projects linking other production regions with

the EU (e.g. Iran and Azerbaijan through the Nabucco pipeline project), security of

supply concerns remain.

Possible scenarios for supply disruptions include the drop out of pipelines or capacity

reductions in transit countries due to political disputes (as seen in Ukraine in January

2006) or technical problems on a major import route. To cope with such scenarios, the

European Commission's January 2007 Energy Package demands the identi�cation and

elimination of potential bottlenecks within the European transmission grid and envis-

ages the holding of strategic gas reserves in the long term. Therefore, this paper aims

to analyse the su�ciency of the European natural gas transmission system regarding

the e�ect of planned infrastructure projects and the identi�cation of bottlenecks. To

do so, we will employ Tiger (Transport Infrastructure of Gas with Enhanced Reso-

lution), a dispatch model of the European gas market with monthly resolution and a

time horizon of 10 years.

The paper is structured as follows: The next section summarizes the security of

supply situation for the European gas market over the next decade and section 3

presents the Tiger model, its underlying database and the main assumptions of our

reference run. Some results of our analysis are presented in the subsequent section.

Section 5 o�ers some concluding remarks.

2 Natural Gas for Europe

Two simultaneous developments result in the EU's increasing import dependency -

declining indigenous production and rising demand.

Production is already in the decline in all major production regions within the EU.

Especially the forecasted reduction in the UK's production, which is expected to fall

from current levels of more than 90 bcm per year (in 2005) to between 30 and 40 bcm

by 2025 (Gas Strategies, 2006), will cause total European gas production to decline by

one third over the next two decades. Furthermore, production �elds close to growing

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2 NATURAL GAS FOR EUROPE 2

markets will increasingly be used to cover seasonal demand peaks only, something one

can already observe at gas �elds in the Netherlands.

Demand forecasts are shown in �gure 1. Although predicted growth until 2015 varies

depending on the scenario between 12 and 40 percent (from 2006 levels), increasing

demand is predicted by all the studies. All outlooks agree that the major share of

this increase is expected from the energy transformation sector, and that in mature

markets (with some minor expections in South Europe) no signi�cant increases can

be expected from the other sectors. However, while the power sector with its rush for

gas �red plants is believed to be a key driver for future European gas demand, this

sector's development has a great amount of uncertainty attached to it. CCGT plants

are currently favoured by the demand for e�cient and �exible generation capacities

in liberalized markets, �exibility requirements to counter volatile feed-in volumes of

renewable energies and not least due to its low carbon intensity. But all these factors are

ultimately determined by political decisions and given the current uncertainty therefore

do not allow any precise forecasts. Scenario calculations hence vary signi�cantly due

to di�erent assumptions.

Figure 1: Selected demand forecasts for the European market

Comparing these forecasts for European demand and indigenous production draws

the following picture. Declining production and increasing demand lead to rising import

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2 NATURAL GAS FOR EUROPE 3

requirements with the EU's import quota increasing from below 60 percent in 2006 to

an average 75 percent in 2020. The development is illustrated in �gure 2.

Figure 2: E.U. import gap

From a security of supply point of view, this raises the question if and how this

increased import demand can be satis�ed. The question whether world-wide reserves

are su�cient to cover the demand can be answered with yes (Bothe/Seeliger, 2006).

Geographically, the EU is in a relative comfortable position. The surrounding regions

including the former Soviet Union (FSU) countries, Iran, Norway and North Africa

(including Nigeria) have known reserves of 150 trillion cubic meters (TCM) which are

accessible today or likely to be so within the next two decades. Discovered resources

which are not economically and/or technical accessible today are believed to exist in

the same magnitude in these regions. The total consumption to be satis�ed with gas

from the named regions until 2030 is estimated at 40 TCM, with the EU's import

requirements in the same time period at 20 TCM. As the mentioned reserves can, by

de�nition, be used economically and technically even today, a physical shortage of gas

in the production regions is highly unlikely in the foreseeable future.

However, physical availability at production sites does not necessary equate to secure

supply in the demand centres. Therefore, an analysis of the transport infrastructure is

required. The increasing demand for imports will lead to a rising utilization of existing

transmission pipelines and LNG import terminals. As of 2005, the import routes from

the EU's major supplying production regions are approaching full utilization (Norway

94 %, FSU 93 %, Africa 100 %). However, a signi�cant number of new infrastructure

projects - or the expansion of existing infrastructure - is being proposed or already

under construction, e.g. the Medgaz pipeline from Algeria to Spain, the Nord Stream

pipeline from Russia through the Baltic Sea to Germany and/or the expansion of the

Yamal pipeline through Belarus and Poland, numerous LNG projects in Italy, Spain,

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2 NATURAL GAS FOR EUROPE 4

France, UK and the Netherlands, and amongst others - in the more distant future - the

Nabucco pipeline from Iran and Azerbaijan through Turkey and South-eastern Europe

to Austria and the GALSI pipeline from Algeria via Sardinia to mainland Italy.

On aggregate, it appears that the increase in import capacities in the LNG sector

and regarding transmission pipelines is su�cient to satisfy the EU's rising import needs.

This is illustrated by �gure 3 which shows that even the conservative estimate for total

import capacities is greater than then the highest import-demand forecast for 2010 and

still larger than the average import-demand forecast for 20151.

Figure 3: E.U. import requirements vs. import capacities

However, the �nding that total annual import capacities are greater than the highest

annual demand forecasts does not necessarily allow the conclusion that security of

supply is ensured for all of the EU countries at all times over the next �ve to ten years.

The high seasonal �uctuations of gas demand over the cycle imply that capacities that

are su�cient on average might not be adequate in peak demand times. In a typical

year, up to 13 percent of annual gas consumption in the EU take place in the coldest

month (usually either January or December). Thus, without storages one twelfth of

annual import capacities would need to be able to satisfy one eighth of annual demand.

Looking at the year 2005 in �gure 3 shows that this would not be possible. Thus

storages are important. With a total working volume of 82 bcm in the EU (which

equals the demand of two average months or 1.25 peak months), gas storages appear

to be su�cient to balance seasonal demand �uctuations over the cycle. However, from

1Colors in �gure 3 represent origin of import routes. The di�erences between the optimistic and conservativescenario re�ect di�erent expectations regarding the realization of current projects in terms of date-of-completion andactual capacities and the utilization of LNG terminals.

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3 MODEL AND DATABASE 5

a security of supply point of view, they also need to be in the right places.

Furthermore, even when total gas imports and storage capacities are su�cient, bot-

tlenecks in the intra-European gas transmission system might lead to supply shortages

in certain places when demand increases over times. Finally, supply disruptions on

one or more of the import routes lasting just a few days or up to several weeks or

months may or may not occur due to political confrontations, as seen in Ukraine in

January 2006, or technical problems - the consequences of which regarding the security

of supply for the EU are di�cult to determine from aggregated perspective as done

in the previous paragraphs. Therefore, a more thorough analysis of the European gas

transmission system is required. In the following section we will present a tool to do

so in this paper.

3 Model and database

In order to enable an integrated assessment of the di�erent infrastructure components

(pipeline, storages, terminals) and their interaction with regards to a comprehensive

analysis of the supply situation, a new tool was developed. Tiger is a dispatch model

optimizing natural gas supply to all European countries using all available infrastruc-

ture. The latter is stored in a ditto newly compiled database called Edgis (European

Database of Gas Infrastructure).

3.1 The Edgis database

The model requires detailed information regarding the European gas market. These are

obtained from the Edgis2 database. Speci�cally, the database contains the following

elements:

• the European transmission gird consisting of pipelines/networks run by 34 TSOs

and the respective interconnector capacities between the networks, which in total

equates to

• more than 400 nodes and more than 500 pipeline sections (including pipeline

projects being planned or under construction) with their individual characteristics

(diameter, pressure, capacity, length),

• European gas production aggregated to 12 European production regions,

• non-European production from 8 regions which enter the system at its border

points or through Lique�ed Natural Gas (LNG) import terminals,

• 126 gas storage facilities and 17 soon-to-be completed storage projects with indi-

vidual working gas volumes and injection and withdrawal rates,

2Edgis is owned and maintained by the Cologne Institute of Energy Economics (EWI).

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3 MODEL AND DATABASE 6

• 22 LNG terminals and terminal projects with individual import, LNG storage and

regasi�cation capacities,

• monthly European gas demand broken down into 44 demand regions and assigned

to individual nodes

• and 57 demand pro�les distinguished by country and sector to allow for charac-

teristic demand cycles in each demand region and di�erent demand growth paths

in the sectors (i.e. power generation and domestic consumers).

In order to provide an easy overview on parameters and to enable a comprehensive

visualization all infrastructure elements are geocoded and can therefore be included

in automatically generated maps. (For an example of the graphical analysis of the

scenario, see �gure 7 in section 4 on page 12.)

Figure 4: European gas infrastructure (pipelines, storages, LNG terminals)

3.2 The Tiger model

Tiger is a dispatch model optimizing natural gas supply to the European market.

As a linear model, it minimizes the total cost of gas supply over the 10 year time

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3 MODEL AND DATABASE 7

period it models on a per-month base. Total costs comprise of transport, storage and

production costs. The reason for exogenously including region-speci�c production cost

is to allow the model to choose the cost minimal supply mix for Europe subject to

the gas transmission system instead of pre-specifying the mix of supply countries. The

transport and storage cost components only consist of operating cost. In a dispatch

model, only existing infrastructure or exogenous additions are used, capital costs do

not need to be taken into account.

To realistically model the European natural gas market, the cost minimization is

subject to the following constraints.

Production constraint : For each month, production in a production region cannot

exceed the maximum monthly production (exogenous) capacities in the speci�c region.

Input-output balance : At each of the 400+ nodes in the system, in�ows and out�ows

have to be balanced in each period. In�ows consist of gas transports to the respective

node from other nodes and, if applicable, production at the node or �ows out of storages

or regasi�cation terminals; out�ows equal �ows to other nodes or into storages as well

as demand at the speci�c node.

Storage constraint : The volume of gas in a storage equals its volume in the previous

period plus injections (less compressor consumption) and minus withdrawals from the

storage.

Supply constraint : The total volume of gas supplied to nodes within a demand region

has to equal total demand in that region for each time period.

Capacity constraints ensuring that gas supply is subject to the characteristics of the

European gas infrastructure system apply for all the elements. These constraints are

posed by pipeline capacities, maximum storage volumes and injection and withdrawal

rates and LNG import, storage and regasi�cation capacities. All infrastructure ele-

ments encompassed in Tiger are illustrated in �gure 4.

3.3 Reference Case Assumptions

For the analysis in this paper, we make the following assumptions regarding infrastruc-

ture, production and demand.

Infrastructure data is taken from the Edgis database. All existing pipeline, LNG and

storage capacities are available for usage. For new infrastructure projects, we make the

following conservative assumptions:

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3 MODEL AND DATABASE 8

• the �rst line of the Baltic Sea pipeline Nord Stream will go into operation in 2011,

one year later than planned, the second line (proposed for 2012) will not enter

service over the course of the considered time period (up to 2016),

• capacity of the Yamal pipeline will not be expanded,

• the Algeria-Sardinia-Italy pipeline (GALSI) will be available in 2012 (one year

delay regarding the announced date-of-completion),

• the �rst construction phase of the Nabucco pipeline (with capacities of 8 bcm to

Baumgarten) will enter service in 2013 (i.e. with a one year delay) with the �nal

sections in Austria and Hungary only completed in the second half of the year

(1.5 year delay), the second construction phase supposed to more than double

available capacity around 2015 is not considered,

• the Italy-Greece-Interconnector (IGI) will be available in 2012 (one year delay),

• the Baltic-Gas-Interconnector between Germany and Sweden and Denmark is not

considered as the project is currently blocked by the Danish government,

• the Wilhelmshaven LNG project is not considered,

• and the later capacity expansion of the Brindisi LNG terminal (from 8 to 16 bcm)

and the construction of two LNG terminals in the Netherlands will be delayed by

one year each.

Demand is assumed to be equal to the the Gas Strategies Central Case Demand

(GasStrategies, 2006) which is an 'above average' demand scenario (see �gure 1, page

2) assuming an increase in excess of 20 percent over the time period for the selected

countries.

Production capacities for the time period were estimated using the results of the

forecast-model EUGAS (Perner, 2002) and annual production output estimations from

GasStrategies (2006). This allows us to exogenously specify installed capacities in each

year of the optimization. (It is important to di�erentiate between production capacities

and marketed production as production capacities determine peak production while

marketed production is determined by the utilization of production facilities over the

cycle. This is especially important for production regions with high output �uctuations

over the cycle such as the Netherlands.) Production costs are taken from the EUGAS

model as well (Perner, 2002). The only exception is the Netherlands. To model the

declining reserves in Dutch gas �elds which imply a higher value of the remaining gas,

thus allowing producers to charge higher premiums and operate as swing supplier in

time of high demand, a signi�cant mark-up for Dutch gas above production costs is

assumed.

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4 RESULTS 9

4 Results

4.1 Reference Run

In the reference run with the above assumptions, there appears to be only one severe

- but on a European level minor - bottleneck. This bottleneck between Sweden and

Denmark is a consequence of the reference case's assumption not to consider any plans

regarding a Baltic-Gas-Interconnector supplying gas from Germany to Sweden due to

a lack of political support from the parties involved at this point of time. (Other

options for gas to Sweden, as a once-proposed LNG terminal near Stockholm or a link

to Russian gas via Finnland or the Nord Stream were not included as they do not

seem any more likely than the BGI.) Therefore, increases in Swedish demand - which

GasStrategies estimates to be as high as 100 percent over the next decade - have to

be solely covered through the existing links from Denmark which current capacities

are not capable of doing. Furthermore, the analysis shows that even increasing this

capacity cannot be the solution as although Danish gas production is su�cient to supply

Denmark and Sweden when considered on an annual level, the two countries lack the

storage capacities to balance out demand �uctuations over the cycle. Therefore, if

Denmark were to remain Sweden's sole gas supplier and Swedish demand would rise as

expected, either storage capacities in the two countries or the reverse �ow capacities

on the Denmark-Germany pipeline (DEUDAN) would have to increase.

Other than that, the European gas infrastructure appears to be su�cient to cope

with average demand scenarios as assumed in the reference run. Even more, LNG

terminals of which there may be as many as 20 by 2013, only show an average utilization

of 41 percent (of 184.8 bcm total capacity) in the same year in a cost minimizing world

(although this �gure will increase to up to 70 percent in winter months, see �gure

5). That shows that this import option is not fully used and allows further imports

to most European countries on this 'route' without further expansions. As for the

Figure 5: Monthly utilization of European LNG import capacities (2013)

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4 RESULTS 10

pipeline import routes, existing transmission pipelines from Algeria are fully utilized

during the whole optimization period, new ones (GALSI, Medgaz) as soon as they

enter operation. Norway is operating at or close to full production capacity each year.

Imports from Azerbaijan/Iran after Nabucco goes on line do not play an important role

over the next 10 years - especially as a large part of the Nabucco capacitiy may only

be available towards the end of that time period. In a cost-minimizing environment,

the import pipelines from Russia are not fully utilized as the long-range transport from

the gas �elds in Western Siberia makes Russian gas more expensive than Norwegian

or Algerian imports. However, due to increasing demand, the aggregated �ow through

the three major Russian export pipelines (Yamal, Transgas, Nord Stream (as of 2011))

increases over time. The development of the utilization of these pipelines over the cycle

is illustrated in �gure 6 which depicts the changes between 2008 (without Nord Stream)

and 2015. Noteworthy is that while the utilization of Yamal increases due to improved

connections and rising demand in Germany and Nord Stream is fully utilized all year by

the middle of the next decade, Transgas usage - especially during the summer months

- is cannibalized by the increased usage of the more Northern routes.

Figure 6: Comparison of monthly utilization of import pipelines in 2008 and 2015

To investigate our previous �ndings of future overcapacities into Europe on an ag-

gregated level with regard to the factual infrastructure situation, we modelled an ad-

ditional run leaving out all new pipeline projects mentioned in the previous section

(GALSI, IGI, Nord Stream, Nabucco).

The main results of that alteration of the reference run is that natural gas supplies

to Europe are still secure (regarding the su�ciency of available infrastructure) until

the end of the model time period in 2016. Of course, due to a lack in increased pipeline

capacities, LNG will play a more signi�cant role. However, although total LNG imports

climb by about one third, average utilization of LNG import capacities still remains low

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4 RESULTS 11

(below 60 percent on average). Although the alteration meant a reduction of Russian

export capacities by 27 bcm per year, the country's exports decreased by only 9 bcm

per year in 2012. This is a consequence of the previous discovery that these capacities

are not fully utilized in a cost minimizing world.

4.2 High demand case

Di�erent to the reference run, for this scenario we assume that gas consumption in

Europe will increase according the the GasStrategies high case demand. This scenario

predicts a rise of gas consumption in excess of 40 percent until 2015 which is the largest

increase of all aforementioned forecasts (compare �gure 1).

In contrast to the reference run there are now a number of bottlenecks in the Euro-

pean gas pipeline grid. And they are not regionally limited like in the previous scenario

but e�ect most of Western Europe. Remarkably, most of the bottlenecks are at bor-

der points between di�erent networks and not within a network in a speci�c country.

Bottlenecks at border points occur between

• the Netherlands and Germany (Bunde),

• the Netherlands and Belgium ('s Gravenvoeren),

• Belgium and France (Blaregnies/Taisnieres),

• Belgium and Germany (from Eynatten into both, the E.ON Ruhrgas and Wingas

grids),

• Austria and Germany (Oberkappel and Burghausen),

• Spain and Portugal (Badajoz),

• and within Germany at connections between the E.ON Ruhrgas and Wingas grids

(speci�cally in Reckrod).

A graphical illustration of these bottlenecks is presented in �gure 7 (page 12).

Additionally, minor bottlenecks within the domestic grids in Germany, Greece and

the Netherlands interrupting gas supply in some areas occur in our simulation. Fur-

thermore, the issues regarding the supply situation of Sweden described in the previous

section remain. However, total import capacities of the investigated countries do not

seem to be an issue.

4.3 Stress Scenario

From identifying potential bottlenecks in the case of high demand increases in the

previous subsection, we now return to an analysis of the reference demand with a focus

on a stress scenario.

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4 RESULTS 12

Figure 7: Bottlenecks at cross-border points in the high demand scenario in 2015

As an example for our investigation, we chose a drop out of the Yamal pipeline in

Belarus after 20113 and focus our analysis on the consequences for the EU without

Poland. The reason is that the case for security of supply within Poland in such a

scenario is fairly trivial and solely depends on storage volumes within the country

at the time. Cross-border capacities with neighbouring countries are by no means

su�cient to satisfy Polish demand over a longer period of time. (However, this may

change when a new link with Northeastern Germany - and thus, access to Nord Stream

supplies - or an aspired pipeline to Denmark or LNG import terminal near Gdansk are

realized.)

For the consequences of such a scenario on the rest of the Europe, in addition to

the duration of the drop out, this largely depends on two factors: (a) the timing of the

incident and (b) institutional requirements regarding storages.

(a) Timing thereby refers to the question, whether the drop out occurs in a period

of high or low demand (i.e. summer or winter). Our analysis shows that such a

situation in the summer months (May to July) can be fairly easily coped with - even

over a longer period of time. The remaining import capacities are su�cient to meet

the demand which would have otherwise been met with volumes transported through

the Yamal pipeline. Even the highly unlikely event of a continued loss of that import

route throughout the winter could be coped with as storages would be �lled su�ciently

in anticipation of the reduced Russian imports during winter. However, if there is no

anticipation of such an event and the drop out were to occur surprisingly during the

winter months, supply shortages in Western Europe would be the result. This assumes3When Nord Stream line 1 is in operation.

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4 RESULTS 13

that �rms just �ll their storages to meet the usual winter demand not met through

imports. Reduced imports would lead to shortages. (In the model, this will always

take place due to the cost-minimization approach with perfect foresight.) However, this

looks di�erent if strategic storages were held in each country - as recently proposed by

the European Commission.

Figure 8: Total storage volumes in the EU 2010 to 2015

(b) In 2007, total available storage capacity in the EU countries covered by our model

is 82 bcm. With a mean demand assumption of 560 bcm for the same year, this equals

about 15 percent or less than two average months' demand or less than the demand of

1.25 winter months. As shown in section 2 the import requirements in a peak demand

month (winter) are higher than the maximum monthly import capacities. Therefore,

storages are required to balance demand between summer and winter and cannot be 're-

served' as strategic storages. The Tiger reference run extended to strategic storages

shows that even with perfect foresight, the system could not sustain its equilibrium

(supply equals demand in each demand region at each time) in 2007 as soon as a

strategic reserves-holding obligation in the magnitude of half a month's demand on an

EU level is implemented4. Therefore, in order to be able to use storages as strategic

storages, an increase in either working volumes of storages or import capacities is nec-

4Such obligations on a national level would be even less possible as storage capacities are not equally (i.e. relativeto gas demand) distributed among the member states.

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5 CONCLUSION 14

essary. Again, as observed in section 2, the increase in import capacities actually takes

place. Therefore, instead of looking at 2007, we will look at the situation after Nord

Stream went into operation. The analysis now yields that holding minimal reserves

requirements (0.5 average months' demand) will be possible without destabilizing the

system. Storage volumes with and without minimum reserves requirements are illus-

trated in �gure 8. Now, returning to our scenario, if Yamal drops out in winter leading

governments to lift the reserves requirements and 'freeing' stored gas volumes, demand

shortages will not occur5. Figure 9 shows how storage volumes evolve in such a scenario

of a Yamal drop out for up to three months starting November 2012. The signi�cant

reductions in storage volumes (of roughly 50 bcm) until February 2013 demonstrate

that such an incident could not have been compensated in a model world without min-

imum reserves (compare �gure 8 where, without minimum reserves, winter storages

volumes are much lower than in this case required, even on an aggregated level).

Figure 9: Total storage volumes 2011 to 2013 in case of import pipeline dropout

5 Conclusion

Declining indigenous production and rising demand will cause Europe's import depen-

dency in natural gas to rise over the next ten years. In this paper, we use the features

and potential of a newly developed model, Tiger, in order to assess this situation in

detail regarding the su�ciency of available gas infrastructure. With more than 1000

infrastructure elements, the dispatch model uses a realistic representation of the Euro-

pean gas infrastructure including all production and demand regions, all major existing

and planned transmission pipelines, storages and LNG import terminals. Optimizing

5At least if that happens before 2014 in our simulation. After that, demand is too high but storage projects not yetincluded in our model will likely have been completed.

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Bibliography 15

natural gas supply to Europe taking these elements into account, we �nd that - with

a few exceptions - current European infrastructure is su�cient to meet rising demand

according to an average growth forecasts over the next decade. Furthermore, we have

shown that with the extensions to the grid planned within the next �ve years, Europe

will be in a position to partly use its current seasonal storages as strategic storages

which would then be able to secure European supply in the event of an extended drop

out of one of the major import pipelines in peak demand times. When assuming very

high demand growth over the next ten years, a few bottlenecks in the European gas

grid will become critical. However, the majority of them is at border points between

di�erent national or intra-national transmission systems meaning that security of sup-

ply in times of high demand or supply interruptions could signi�cantly be improved by

increasing these transfer capacities.

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European Commission (2006): European Energy and Transport - Trends to 2030 -update 2005. Brussels.

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