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Report on Company and Market Structures in the European part of the UNECE area
Infrastructure

In almost all countries investments in the gas infrastructure are largely on schedule, based on the planning of the past 3 years.

It is believed that adequate investments will take place during the coming 6 years if the regulatory framework reflects the risks which investing companies have to deal with. However, there are indications that in some countries the further development of distribution systems and decision-making by large consumers, especially on the issue of fuel choice, are somewhat slowed down for various reasons. Indeed, given the level of investments needed and the expected growth of the gas market, a real postponement of some investments might have serious setbacks for the market.

In hardly any EU country or non-EU country does the government directly support infrastructural investments financially. In the new European Commission guidelines concerning projects of common interest in the field of trans-European energy networks, it is indicated that specific projects may be financially supported during the study phase and/or the financing scheme of the project itself through the European Investment Bank in Luxembourg or other public or private financial institutions, or direct grants to investments can be assigned in duly justified cases. There is also a tendency to have the regional development funds linked to infrastructural projects.

Two large investment projects terminals in the United Kingdom (Grain LNG and South Hock LNG) and BBL (offshore pipeline connection between Balgzand in the Netherlands and Bacton in the United Kingdom) were given the go-ahead by the companies and shareholders of the companies after the European Commission implicitly (regulators or responsible Ministers explicitly) decided that some market regulations with regard to TPA requirements would not be applicable. Granting an exemption from TPA provisions (Gas Directive according to Article 22) is vital for the feasibility of such projects. These projects, as well as all other gas infrastructure projects, require a stable and healthy investment climate providing a long-term and secure income.