European market
The natural gas market in Europe
The German gas market is part of the European gas market system and the European natural gas transmission system. But where does natural gas come from? How long will stocks last? How are consumption patterns changing? Below you will find the answers to these and other frequently asked questions, along with links to other information sources.
- 1. What is natural gas?
- 2. Where does Europe's natural gas come from?
- 3. How much natural gas is being consumed?
- 4. Where does Germany's natural gas supply come from?
- 5. How large are natural gas stocks?
- 6. What is the European natural gas transmission system?
- 7. What is LNG?
- 8. How is the gas market organised?
1. What is natural gas?
Natural gas is a naturally occurring primary energy source that can be used without additional processing. Natural gas is odourless, highly flammable and non-toxic. It is made up of 80 to 99% methane and higher hydrocarbon compounds such as ethane, propane and butane. Depending on the region, it may contain other substances such as carbon dioxide.
Top2. Where does Europe's natural gas come from?
The largest natural gas deposits in the world are found in Western Siberia (an estimated 48,000 billion m3) and in the Near East (an estimated 70,000 billion m3). In Western Europe, the largest deposits are to be found off the Norwegian coast (the Troll field, with around 1,300 billion m3) and in the Netherlands (the Groningen field). In Germany, the most significant extractable natural gas stocks are located in Lower Saxony (around 90%). They represent around 270 billion m3 (3).
Top3. How much natural gas is being consumed?
In 2005, 2,790 billion m3 were consumed worldwide. German consumption was just under 100 billion m3, twice as much as in 1980. On average throughout Europe, the amount of gas consumed as a proportion of total primary energy consumption was around 24%. Global consumption is predicted to rise to around 4,850 billion m3 by 2030.
Top4. Where does Germany's natural gas supply come from?
In 2005, Germany met just under 20% of its own natural gas needs. The remainder was imported from Russia (39% of the imports), Norway (26%), the Netherlands (23%) and other countries (12%). Germany provides relatively large storage facilities, whose volume corresponds to about 19% of Germany's annual consumption.
Top5. How large are natural gas stocks?
In late 2005, definitely exploitable natural gas stocks stood at 176,000 billion m3 enough to supply the world's population for around 63 years (at current consumption levels). Adding those resources that cannot presently be exploited for financial or technological reasons (e.g. natural gas hydrate), global supplies will last until around the beginning of the 23rd century.
Top6. What is the European natural gas transmission system?
The European natural gas transmission system stretches from the North Sea and the Baltic down to the Mediterranean and from the Atlantic to Eastern Europe. It is made up of the transmission systems of different European gas companies linked up by interconnections at various points. Europe has a total of almost 1.5 million km of pipelines; the trunk lines alone stretch for around 50,000 km. In some cases, the gas has travelled more than 5,000 km from its point of extraction by the time it reaches the consumer. The pipeline system in Germany streches for around 390,000 km.
Top7. What is LNG?
Liquefied Natural Gas (LNG) is natural gas that has been heavily condensed for transportation over long distances. The gas is cooled to -160°C and then transported in special tankers. When it reaches its destination, the LNG is turned back into gas in special terminals and then injected into the natural gas pipeline system. When one cubic metre of LNG is regasified, it produces up to 600 m3 of natural gas. LNG accounts for around a quarter of the world's natural gas trade. In Germany, investments in LNG terminals are only now being undertaken - these facilities will not come into operation before the year 2010.
Top8. How is the gas market organised?
The German gas market is organised under civil law and takes place largely at three levels:
- Import and production
- Transmission and distribution
- Regional distribution/distribution to end users
The German gas market comprises some 750 independent companies employing around 34,000 people. Production companies and cross-regional import companies supply natural gas from Germany and beyond to gas companies, households, businesses and industry.
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For more information about the gas market:
National
- Data on the structure of energy consumption in the Federal Republic of Germany are published by, amongst others, Arbeitsgemeinschaft Energiebilanzen (AGEB)
- Germany's natural gas import data are published monthly by the Federal Office of Economics and Export Control (BAFA)
- Information about the German gas market is published by the Federal Association of the Gas and Water Industry (Bundesverband der deutschen Gas- und Wasserwirtschaft e.V).(BGW)
- Specific technical information is published by the DVGW (German Technical and Scientific Association for Gas and Water).
- Information on natural gas storage and reserves is compiled by the Lower Saxony Regional Office for Mining, Energy and Geology (Niedersächsisches Landesamt für Bergbau, Energie und Geologie or LBEG)
- Data about the extraction of natural gas in Germany is published by the Economic Association of Mineral Oil and Natural Gas Production Wirtschaftsverband Erdöl- und Erdgasgewinnung e.V.
International
- Statistical information about its member states is published by the United Nations Economic Commission for Europe (IEA)
- Comparative statistics on EU Member States are compiled by the EU's statistics office EUROSTAT
- Information about the international natural gas market is published by, amongst others, the International Energy Agency
