Annexes to COM(2016)49 - EU strategy for liquefied natural gas and gas storage - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2016)49 - EU strategy for liquefied natural gas and gas storage. |
|---|---|
| document | COM(2016)49  |
| date | February 16, 2016 |
4. SUSTAINABILITY AND THE USE OF LNG AS AN ALTERNATIVE FUEL IN TRANSPORT, HEAT AND POWER
As noted in the introduction, LNG has the potential in some cases to reduce current environmental impacts, for example in the transport sector when it replaces fuels such as diesel or heavy fuel oil. The use of LNG in lorries and shipping can reduce emissions of various pollutants and in the case of shipping, can allow the sector to meet the requirements for decreasing the sulphur and nitrogen content in marine fuels used in the Emission Control Areas. In both cases the use of LNG can reduce greenhouse gas emissions, in particular when blended with liquid biomethane, provided methane emissions are minimised (see below). Similar considerations can apply to small scale LNG use for heat and power, and the EU should continue to support the growth of LNG as an alternative fuel where it replaces more polluting conventional fuels and does not take the place of renewable energy sources, consistent with sustainability goals.
The precise environmental impacts will depend on a range of factors at different points in the LNG supply chain, and should be assessed case by case. A key factor in this regard (as for pipelines and for natural gas use in general), is the extent of any methane emissions, and manufacturers and operators of all LNG supply facilities or technologies should aim to minimise such emissions and hence the overall greenhouse gas impact of LNG use.
Another key factor is the long term availability of lower carbon alternatives. Renewable energy sources and/or energy efficiency can be highly cost-effective solutions in many cases and such options should be considered carefully alongside any decisions on LNG infrastructure – particularly in the interests of avoiding technology lock-in or stranded assets. Further detail on the above issues can be found in the staff working document accompanying this Communication.
Action points:
• The Commission calls on Member States ensure full implementation of Directive 2014/94/EU on alternative fuels, including the establishment of LNG refuelling points across the TEN-T corridors and at maritime and inland ports.
• The Commission continues to pursue its works to establish a harmonised regulatory and standardisation framework that encourages the development of LNG in shipping, in cooperation with stakeholders inter alia through the European Sustainable Shipping Forum.
CONCLUSIONS
The creation of liquid and competitive markets so that LNG and other new gas supplies can reach and compete in previously isolated markets is of fundamental importance to achieving the objectives of the Energy Union. The Commission's analysis indicates that full implementation of the key PCIs highlighted by the high level groups will remove, or at least mitigate, the main vulnerabilities identified by the gas stress tests. It is therefore vital that the missing infrastructure links rapidly be constructed, and the requisite measures taken to promote liquid and competitive markets, including those to enable access to LNG and to promote new liquid hubs in the central and south eastern, Baltic and south western regions and the Mediterranean.
Where the geological conditions allow for it, storage plays a major role in balancing the usual daily and seasonal fluctuation of supply and demand. However, the effectiveness and efficiency of the use of storage across Member States' borders and at regional level, both under normal market conditions and in crisis situations, could be improved. This should be addressed in the future regional preventive action and emergency plans under the proposed revision of the gas SoS Regulation.
The measures identified in this Communication go to the heart of the Energy Union and have the potential to achieve the aim of a secure and competitive gas market across the EU, but will require resolute action, particularly at Member State and regional level. The Commission will report on progress as regards the strategic LNG and storage objectives presented here in its annual State of the Energy Union, identifying, any additional measures required.
(1)
COM(2015)80.
(2)
COM(2015)572.
(3)
COM(2014)330
(4)
COM(2014)654
(5)
As part of this the Commission conducted a three-month public consultation – the results of this are discussed further in the Commission staff working document accompanying this Communication.
(6)
A table showing the import capacity of existing and planned LNG terminals is included in section 4 of the staff working document (SWD(2016)23).
(7)
20% compared to the global average of 33%. See also staff working document.
(8)
The project at Krk (Croatia) is a clear example of this.
(9)
Due to lower investment costs and shorter lead times. The last six LNG terminals established have all been FSRUs.
(10)
See section 4 of staff working document
(11)
Exempted terminals; see also sections 3 and 4 of staff working document
(12)
No State aid would in principle be allowed if the under-utilisation of existing relevant infrastructures indicates that no new infrastructure is needed.
(13)
See section 5 of staff working document.
(14)
See also section 5 of staff working document.
(15)
Regulation (EU) No 347/2013 on guidelines for trans-European energy infrastructure; OJ L 115, 25.4.2013, p. 39-75.
(16)
The second Union list of projects of common interest (PCIs) was adopted on 18 November 2015. C(2015) 8052 final
(17)
The Ten Year Network Development Plan 2015 identified the Iberian Peninsula as an area lacking integration with the rest of the EU and therefore exposed to price volatility on the global LNG market.
(18)
A detailed list and project descriptions can be found in section 7 of the staff working document
(19)
The results of the modelling both for LNG and storage and further background can be found in section 8 of the staff working document.
(20)
Modelling also shows the need to complete the North-South corridor in central Europe to allow gas to move freely in all directions.
(21)
Competition rules are also being strictly enforced, thereby preventing distortions of the internal gas market and enhancing security of supply
(22)
See section 4 of staff working document
(23)
These markets cover some 75% of total EU gas demand (source: ACER based on Gas Target Model)
(24)
Notably BEMIP, CESEC, and South-West Europe
(25)
See section 5 of staff working document.
(26)
See section 6 of staff working document for more details.
(27)
Proposal for a Regulation of the European Parliament and of the Council concerning measures to safeguard security of gas supply and repealing Council Regulation 994/210.
(28)
See section 2 of the staff working document