ECE Gas Centre Database System - Report on Security of Natural Gas Supply in the European Part of the Unece Area

Report on Security of Natural Gas Supply in the European Part of the Unece Area

III. FACTS, FIGURES AND FUTURE

7. Transit

Secure transit of natural gas from producing countries to (end) consumer countries is a successful part of the gas chain. Increase of capacities is being developed via new projects and the extension of existing systems.

Transit issues are becoming more important as highlighted in the ongoing discussions on the Transit Protocol to the Energy Charter. Issues that have to be solved in view of security of supply are:

Fair, non-discriminatory transmission tariffs in all countries involved, based on investment and operating costs and a reasonable rate of return;
Right of first refusal when producer/trading companies have to fulfil long term obligations and their transit contract is expiring, avoiding supply limitations in the event of a possible transport capacity deficit.

Matching long term supply contracts and long term transit and transportation contracts is essential for a secured supply and adequate mid stream investments. On the one hand, the integration of Europe is expected to have a stimulating effect in this respect. Enlargement of the EU to the East also means further stabilisation of the transit of gas from the Russian Federation and possibly Central Asia. On the other hand, producers and importers are becoming increasingly dependent on transit countries. Against this background, increased cooperation by producers and importing countries with transit countries is a suitable means of ensuring undisturbed transit for the benefit of supply security.