Eurasian natural gas: Opportunities and risks

Conference organised by the Energy Charter Secretariat jointly with the European Union of the Natural Gas Industry (Eurogas) and the International Association of Oil and Gas Producers (OGP). The countries of Eurasia have the potential to create a single market for natural gas. This was the conclusion of a Conference on 'Eurasian Natural Gas: Opportunities and Risks' held in Brussels on 12-13 November 2003.

The Conference was organised by the Energy Charter Secretariat together with the International Association of Oil and Gas Producers (OGP) and the European Union of the Natural Gas Industry (Eurogas). It brought together over 200 participants from governments, energy companies, financial institutions and international organisations, with the aim of discussing the creation of a single market for gas trade and investments in Eurasia. It also highlighted the obstacles that need to be overcome to make this goal a reality. Among the keynote speakers were senior figures from industry, the EU institutions and inter-governmental bodies.

Key issues raised during the Conference included the development of greater gas supply security and competition across the Eurasian continent, and the need for effective cooperation aimed at establishing more liberalised regimes of access to national gas pipeline networks in transition economies. Participants in the Conference underlined the need to find solutions to the issues raised, as part of the creation of the right long-term climate for increased investments in gas production and transportation in Eurasia, for the benefit of consumers, industry, and general economic growth.

In his concluding address, Energy Charter Conference Chairman Henning Christophersen noted that huge investments are needed if the Eurasian continent is to maximise its potential economic advantages as a single gas trading area, and the risks associated with these investments therefore need to be reduced to the minimum possible.

"Neither governments nor industry have all the answers to the challenges that exist in this area, and it is therefore vital that they join forces in discussing them, in order to develop policy approaches that take into account the needs and interests of both producers and consumers",

said Christophersen.

"This Conference represented a step forward in promoting such a discussion, bringing together as it did many of the key actors involved from across the Eurasian area".

Presentations made to the Conference are available below. In addition, the speech made by Leif Ervik, Director at the Energy Charter Secretariat, Towards an Open and Competitive Eurasian Gas Market, is available here. This speech covers in detail the main structural issues facing the Eurasian gas market, notably related to pricing, supply competition and access to networks.