Eurogas Secretary General on Oettinger and a Well-Interconnected, Integrated Market
Natural Gas Europe had the pleasure of speaking with Beate Raabe, Secretary General of Eurogas, the association representing the European gas wholesale, retail and distribution sector. We spoke about European policies and efforts, the recent trilateral negotiations, and the ties between Eurogas and Eurelectric.
All in all, what is your assessment of Günther Oettinger? Did he manage to achieve the results he was expected to?
Günther Oettinger has been a committed Commissioner and Vice-President, who has sought to drive the internal energy market forward. His engagement in the gas dialogue between the Russian Federation and Ukraine has been exemplary.
The European Commission allocated €5.85 billion to energy projects for the 2014-2020 period. Do you think the amount and allocations are correct? Would you have preferred stronger financial support for projects in Slovakia, Czech Republic and Hungary?
I have no opinion on the appropriateness of the amount or the allocation. Environmental NGOs have criticised the allocation of funds to gas projects. This view ignores the need to complete certain links in order to complete a secure and liquid internal gas market, and this view denies to European energy customers a diverse choice of low-carbon energy options.
In a recent presentation, you spoke about the guarantee Europe denied to Ukraine for the deal with Russia. The European Commission said it is providing unprecedented support to Ukraine by making funds available. Kiev is now free to use this money for the gas. Against this backdrop, there is a clear cost being shouldered by Brussels, but still some uncertainties remain. Do you see any lesson to be learnt from the deal?
Correction. I did not say that Europe ‘denied’ a guarantee to Ukraine. I have no information on the process leading up to the EU approving that Ukraine could use already agreed EU funds, rather than providing a guarantee.
More generally, are European authorities called to make their diplomacy more punchy, more authoritative?
Diplomatic efforts on all sides should aim at a rapid and lasting de-escalation of the situation in Eastern Ukraine.
Commentators suggested European companies could and should invest in Naftogaz. Do you think it would be a rational decision?
This is up to the companies to decide and the rationale may vary between them. Generally, Ukraine will need to offer a stable and predictable investment climate to attract foreign investment.
In your presentation in Berlin, you also mentioned the Gas Stress Test published by the European Commission, what is your take on the methodology of the gas stress test. Anne-Sophie Corbeau, Research Fellow at KAPSARC, recently questioned the way the gas stress test has been made. She basically said that many aspects underlined in the report are basically a copy and paste of previous studies. Do you agree with her point of view? Is it still a good reference for industry participants?
Eurogas has not undertaken an analysis of the methodology used for the stress tests.
What is a possible strategy to foster cooperation between Member States? How to coordinate Baltic states to converge on a rational strategy that would decrease the risk of underuse of LNG terminals?
The advantages of a well-interconnected integrated market, e.g. security of supply and competitive prices for energy customers, are a strong incentive for Member States to enhance regional cooperation.
In conclusion, several experts recently voiced the need to find an holistic approach to energy, understanding the interconnection between gas and electricity. Do you agree on this point?
Absolutely. Due to the intermittency of variable renewables, gas has an important role to play to ensure a secure supply of energy at all times. The risk of blackouts faced in some countries this winter could have been avoided if gas had been brought into the equation in a more targeted manner.
What is the relationship between Eurogas and Eurelectric? Are the two associations cooperating on many joint projects?
Eurogas and Eurelectric liaise closely with each other. We have the same views on important energy and climate policy questions, e.g. we both support the adopted greenhouse gas reduction target for 2030 and an early reform of the Emissions Trading System, including the Market Stability Reserve. We have lobbied side by side on the ETS. We also cooperate on energy trading issues regarding financial markets, and exchange points of view generally on wholesale and retail issues, as well as security of supply. Of course, in the heating and transport sectors, we differ in that Eurelectric promotes electricity only while Eurogas promotes a diverse choice that includes both gas and electricity.
Sergio Matalucci
Sergio Matalucci is an Associate Partner at Natural Gas Europe. Follow him on Twitter: @SergioMatalucci