Position Papers

IOGP response to the EU Energy Security Package

IOGP welcomes the Commission’s recognition of the strategic importance of gas for Europe, including the focus on the growing role of LNG. The emphasis in the Energy Security Package on market connectivity, trading hubs and market signals is welcome, as forms of direct policy intervention often distort the market and lead to inefficient infrastructure investments.
The shift towards regional cooperation in the context of the Gas Security of Supply Regulation, and the request for contract notification and disclosure, are areas where clarifications are needed. At the same time, the drive to replace gas with electricity in the Heating and Cooling sector undermines many of the positive signals towards gas suppliers in the LNG and Gas Storage Strategy.
This policy confusion is unlikely to provide gas investors with the confidence necessary to reinforce the vital role that gas should play to satisfy Europe’s energy demand, including meeting the climate objectives agreed in Paris at COP21.

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