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

Transportation systems (including compressor stations) as well as distribution systems are being developed further in almost all countries as a precondition of expected market growth. Plans in EU countries as well as in crucial non-EU transit countries show an increase of capacities. Final decision-making on each individual project has to be based on commercial viability directly related to long-term supply contracts in order to guarantee a proper rate of return for the investors/owners of the infrastructure.

The overall growth of the gas market in EU countries may be around 25% during the period 2000-2010. In some non-EU countries growth is expected to be higher. In other non-EU countries where the gas share in the energy market is already high, the percentage of growth may be lower, like Russia, Ukraine and Belarus.

The growth in the length of the gas distribution systems is expected to be 8-10% in EU countries and 10-13% in non-EU countries. The largest increases are planned in Belgium by 25-30%, Portugal 20-80%, Spain 15-50%, Austria 20-30%, Lithuania 25-30% and in Italy 18-20%. Also in non-EU countries, distribution systems are expected to expand: in Turkey by more than 500%, Ukraine 15-20% and in Russia 5-10%.

In Serbia, a natural gas distribution system is planned to be developed. In Norway, small distribution systems have been developed since the mid-1990s around the gas landing points on the Norwegian west coast. There are plans to transport gas to eastern Norway by pipeline. Distribution by LNG (vessels and trucks) is already in place and will be expanded.

Recently, the IEA has estimated that during the coming 25 years some 20 billion Euros per year have to be invested in the EU gas supply infrastructure (including the Balkan area and Turkey). This 0.5 trillion Euros will have to be financed by the companies involved, mainly based on the securities of their sales contracts.

This map shows the European Gas Market, including the main infrastructure (source: N.V. Nederlandse Gasunie).