EAGC Conference a Success

Over 400 senior executives and policy-makers working in the gas industry in 31 countries attended the highly successful 23rd European Autumn Gas Conference (EAGC 2008) hosted by Eni and held late November on the shores of Lake Como; and provided the information that has led to the publication of an invaluable report. Plans are now underway for the 24th event in the annual series, which will be held in Spain.

"Yet again EAGC really 'hit the spot' with its highly topical keynote addresses; presentation sessions; panels; Champagne roundtables; and networking events," says Event Director, Tony Stephenson of dmg world media (uk) ltd. "The results of electronic voting on a raft of questions on key business issues certainly gave an intriguing picture of current thinking within the industry and these have now been published in Gas Strategies Consulting's report 'Economic downturn drives danger and opportunity into Europe's gas plans' that makes compelling reading.

Delegates and speakers automatically receive a copy of the report.

"GasTV filmed the entire conference and clips demonstrating key points selected by conference chair, James Ball President Director of Gas Strategies Consulting made compelling viewing during our EAGC wrap up forum. These together with a range of interviews undertaken during the event will be online to act as a reminder to those who attended EAGC 2008, and to demonstrate to those who weren't with us in Italy, just how relevant EAGC is to them and their day-to-day business."

The Gas Strategies Report

Gas Strategies - which sponsors the electronic voting that takes place at each of the conference sessions - took the opportunity of putting 18 questions on key business issues to the assembled delegates and asking them to choose from a range of options. As the foreword to the report
explains: "The results - sometimes predictable, often surprising - are a unique insight into the current mood and expectations of the industry:
its hopes, fears and aspirations."

Questions asked over the two days, with multiple choice answers from which to choose were:
" What do gas customers in Europe want most?
" What will be the greatest concern of European gas marketers over the coming year?
" With Russia, Iran and Qatar controlling 56% of world gas reserves, how concerned should policy-makers be about greater co-operation between supplier countries?
" What is the new long-term oil price (in 2008 $USD)?
" What will the average NBP price be in 2009 and 2010?
" What will the average Henry Hub price be in 2009 and 2010?
" What will the average EU ETS carbon emissions price be in 2009 and 2010?
" Given recent warnings about the potential for a gas shortage in Europe in the coming decade, how concerned should consumers be?
" What new power stations, by fuel type will attract most investment in Europe in the next five years?
" Is Europe a sufficiently attractive LNG market for the EU to base policy on LNG being a big part of the supply mix?
" What will be the greatest energy market challenge to European company strategies?
" Do Europe's policy-makers, regulators and gas companies engage sufficiently with each other to understand what the market needs?
" Which issue regarding the 'third energy package' will most exercise the minds of Europe's gas companies?
" Will the current economic and energy-price environment lead to an upsurge in M&A activity?
" With the widespread expectation of a global economic downturn, what focus best summarises your company's gas business strategy for the coming five years?
" What will shape Europe's gas infrastructure in the future? How will it be expanded, maintained and operated?
" Which type of infrastructure investment will most shape Europe's gas future?
" Is there sufficient storage capacity, and access on the right terms, to support liquid hubs in Europe?

"Some of the questions have been asked in past years enabling interesting year-on-year comparisons to be made," explains Tony Stephenson. "We are delighted that Gas Strategies continues not only to sponsor the electronic voting, but also provides such a detailed analysis of the views of our delegates and speakers."

The questions are analysed in greater detail in 'Economic downturn drives danger and opportunity into Europe's gas plans', but some over-riding themes are highlighted in the foreword: "It came through with abundant clarity that few in the industry think the current financial and economic storms will blow over quickly and most - but not all - are very concerned by its potential impact on their own businesses. And while the mood of uncertainty that emerged last year pervaded the atmosphere, the responses this year often showed a marked shift of emphasis attracting clear mandates of opinion.

"When asked whether the current economic and energy price environment would lead to an upsurge in mergers and acquisitions, only 3% voted for the option "No - the current economic storm will blow over sooner than people think and we'll be back to business-as-usual."

"When asked more directly what would be the greatest energy market challenge to European company strategies, two-fifths of delegates opted for "excessive volatility in energy equity and finance markets, and lack of liquidity in credit markets" and a further quarter cited "finance for new supply and transportation projects becoming more difficult and expensive".

Information on the content of the report is available from Gas Strategies authors James Ball [email protected]; and Alex Forbes [email protected]

Day by day at EAGC 2008

EAGC 2008, which was sponsored by Plurigas, Gas Strategies Consulting, NMi, Argus, Gaselys, Energy Delta Institute, got off to a flying start on the evening of November 24 when the Welcome Party, sponsored by Plurigas and A2A, was held in the spectacular Villa Antica.

Opening morning of the conference saw keynote addresses by Domenico Dispenza, COO, Eni Gas & Power the host organization for EAGC 2008; Mario Mantovani, Undersecretary of State, Ministry of Infrastructure and Transport; Wolfgang Vittorio D'Innocenzo, International Affairs Officer, Ministry of Economic Development; Kentaro Morikawa, Senior Vice President LNG Europe, Gas Resources Department, Tokyo Gas Company; and Riccardo Pasetto, Executive Vice President, Corporate Business Development, Edison.

In his keynote address Domenico Dispenza warned that the credit crisis could seriously affect the supply and diversity of gas supply projects in Europe. He said extreme volatility in stock and commodity prices were complicating the planning of major developments, and the drying up of financing has led to unprecedented government intervention in the market. He foresaw that the forecasting of the medium and long-term European gas demand will become a difficult exercise.

Riccardo Pasetto explained that Italian power company Edison SpA expects its Adriatic liquefied natural gas (LNG) import terminal to start full commercial operations in mid-2009, citing June-July as seeing the start of commercial operations. The company plans to start commissioning and testing at the Rovigo terminal in March and will be using four to six ships during that process.

Sessions during the rest of the first day looked at 'Living in the eye of the storm'; 'What are the burning issues for Europe's infrastructure companies?'; 'Geopolitics of international gas markets - it's not personal, it's geopolitical - how the world impinges on Europe's energy reality' with the working day finishing with Champagne Roundtables with the focus on the Italian gas market; Russia; and CO2 / Carbon Capture:
Will CO2 limits be set at levels which will significantly drive fuel choice and will there be a breakthrough in carbon capture.

Delegates then enjoyed Eni's hospitality at the magnificent EAGC Gala Dinner at the Teatro Sociale in Como. "Good company, delicious food, fine wines, and entertainment ranging from operatic arias to some of the most breathtaking acrobatic performers I have ever seen, all within the setting of the beautiful and historic building ensured this is a Gala Dinner that will live in memories for many years to come," said Tony Stephenson.

Day Two began with two compelling keynote addresses by both looking at Europe's position in the Global LNG market. Kathleen Eisbrenner, Executive Vice President Global LNG, Shell Gas & Power was the first speaker; with Khalid Al Kuwari, Marketing Executive, RasGas Company Limited following with news that Qatar expects to increase its production capacity of liquefied natural gas to 77 million tonnes a year by 2012, which would amount to 30% of global supply at that time.

The conference then considered 'New Italian supply - its impact on Italy, Europe and beyond'; 'Europe - how different, how similar from Italy'; and 'Does the demand for gas in Europe continue to decrease or …?' before the EAGC 2008 wrap-up forum.
The conference then considered 'New Italian supply - its impact on Italy, Europe and beyond'; 'Europe - how different, how similar from Italy'; and 'Does the demand for gas in Europe continue to decrease or …?' before the EAGC 2008 wrap-up forum.

Further information on all aspects of EAGC 2008, including the conference presentations and information on how to obtain copies of the Gas Strategies Consulting report and - before long - EAGC 2009 is available from www.theeagc.com and from [email protected]