0 - Highlights

Natural gas is a firmly established element of German energy supplies and has favourable prospects. In 1996, gas consumption in Germany rose by over 12% to a total of 96 Bcm, thus covering approximatively 21.5% of primary energy consumption. This share is expected to reach 24% in 2010. Further noticeable gains are anticipated especially in the residential and commercial sector and in the cogeneration sector. By contrast, the use of gas for power generation is at present not likely to achieve any major increases in the short or medium term.

The major features of the German gas industry include:

- its multi-tier structure (production companies, gas merchant companies and local or regional distribution companies)
- the clear legal framework with a comparatively liberal constitutional basis,
- free gas pricing, but with protected service areas created by demarcation and concession agreements precluding gas to gas competition at local level.