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European Autumn Gas Conference–A Perennial Success Story
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Every year since 1986, the European Autumn Gas Conference (EAGC) has brought together hundreds of Europe’s most influential gas policy-makers, strategists, traders and business leaders for two highly focused days of debate and discussion about issues affecting the future of the European gas industry. Each year a different city and gas producer hosts the event.
At the time of writing, the 24th event in the series was opening in Bilbao, Spain, where delegates were set to hear that RWE Supply & Trading will be hosting the 25th anniversary event in Berlin, Germany in November 2010. More than 300 senior members of he gas industry, from well over 20 countries, gathered to share thoughts and examine the fresh opportunities and challenges facing the industry.
EAGC is held at the traditional start of the ‘gas year’, enabling delegates to network and attend topical conference sessions. Each EAGC begins with a welcome reception that features a sumptuous gala dinner as well as networking lunches. This year’s reception was sponsored by Diputacion Foral de Bizkaia (Regional Government of Biscay).
Topics of importance to the European gas industry are always high on the agenda. The 24th conference programme focused on ‘Independence and Interconnection in European Gas’ and included addresses by Spanish and Basque dignitaries and key international industry players, with sessions on: the Iberian gas market; transport and distribution; gas trading; renewable energy; the state of gas investment; security logistics; and gas projects.
Welcome from the Hosts
Naturgas Energía hosted EAGC 2009, working in association with its sister company EDP Gás. Both companies are part of Energias de Portugal (EDP), which meant that the whole of the Iberian peninsula was involved in shaping the focus of the conference.
“During the two days of the event, we concentrated on current market issues centred around independence and interconnections within the gas industry in Europe – an important theme for Naturgas, in view of the Euskadour pipeline, one of the two key infrastructure projects connecting the berian Peninsula with the rest of Europe,” says Joao Manso Neto, Chairman of EDP Gás and Deputy Chairman of Naturgas Energía.
“We thoroughly enjoyed working with our hosts in the lead-up to the opening of EAGC 2009,” says Jason Franks, Managing Director of dmg world media (uk) Ltd, organisers of the annual event, and also of Gastech. “This year’s EAGC conference, with its theme ‘Independence and Interconnection in European Gas’, was designed to provide a forum for the key issues involving all the industry’s leading players from across Europe and further afield.
“Spain has the most diversified gas supply portfolio of any country in Europe, and speakers from Spain and the Iberian Peninsula briefed and updated delegates throughout the conference,” says he continued. “Whilst there was a strong regional focus, the conference is always of European and international relevance, with a powerful line-up of
speakers from across the global gas industry, with experts travelling to Bilbao from across Europe and further afield to share their opinions on the current – and future – state of play in their specialist areas – we will see the same in Berlin next year.”
The Conference Chairman’s Welcome
James Ball, President Director of Gas Strategies, is the Conference Chairman for EAGC and set the scene for an exciting and highly relevant event. “One year on from the realisation that the economic climate really was heading into hostile territory, a large number of the key players in Europe’s gas business were certainly looking forward with very different plans and aspirations,” he explains. “Fear and hope have each flourished in that year and we look out from a very different context than that of the recent past. While many conditions are much worse, some are much better, depending on your perspective.
The key executives of the European gas business, who gathered for the 24th European Autumn Gas Conference, considered what has changed forever, what is probably short-term discomfort or a welcome window of opportunity and how the changing organisations that will shape the future of Europe’s gas business will behave.
“More and more organisations driving Europe’s gas business have shifted their business models from a national focus to regional optimisation and beyond. European market trading is already a misnomer as the impacts of global gas sway both supply possibilities and trading choices. And while utilities diversify and extend their global footprints, the upstream majors are busy narrowing their focus. A special ‘LNG in the Round’ session at the end of the event considered Europe’s growing global connections, and so too did the panel of traders who are paying more attention to global LNG than ever before.
“It would have been hard enough to cope with economic uncertainty and tightened credit markets last year,” he adds. “But fears over security of gas supply roared back to centre stage too. Last autumn, the troubles between Russia and Ukraine were a fading memory. By winter some countries faced their worst ever gas shortages. And while many countries found open markets took them through the crisis with no disruption, political knees still jerked and panic measures were sought. Efforts to make European gas supply more diverse and more secure remains high on the agenda and will be a theme of this year’s AGC.We asked where the security will come from and, more importantly, who will pay for it, especially in times of falling demand.
“A central part of EAGC is a session built around an extensive survey of gas executives on their companies’ investment activities over the last year and aspirations now. Only a year ago, there was a heady confidence amongst 57% of attendees that they would be grabbing market share and seizing opportunities from the less bold. Yet he
International Energy Agency says investment dropped 21% last year. Did the brave words come true for some? How much austerity set in instead? And what will happen, for what kind of player? A clutch of chiefs will decipher the results and project their own views.
“While times may be mixed for capital expenditure, these could be great times for optimisers and traders… if their companies have credit and the will to play the market so many banks had to abandon or scale down activity in? How have they fared and what does the coming year look like?
“We looked at the local and Spanish market, especially in light of the almost trans-European drive to push up the share of renewables in the energy mix; is wind and rain the foe of gas as some predict, or friend as hydro and wind turbines increasingly require gas-fired power to cover for the fickle swings in their energy sources?
“Bilbao in the Basque country of Spain on the north-west corner of the Iberian peninsula is a market which is at once a gas island and a key crossroads. It features diverse European corporate investment, international suppliers by pipe and LNG and a constantly changing energy market. With a host of LNG import terminals built to serve diversity aspirations of importer and exporters alike, security has long been a strategic driver.”
More Than a Conference
This year’s hosts ensured an exceptional evening’s entertainment at the Tuesday night Gala Dinner at the Guggenheim Museum. These traditional Gala Dinners play an important role in the memories of delegates, with castles and chateâux, historic theatres and homes, art galleries and cruises on rivers all playing a role. Germany’s plans for 2010 are still firmly under wraps.
The dedicated ‘LNG in the Round – an LNG Roundtable’ was held on the second day of EAGC 2009. Aimed at shaping the future of the European gas market through thought-provoking debate, it attracted some of the most influential players in the LNG usiness.
“Global LNG is changing the face of gas markets worldwide,” explains James Ball, “After more than 30 years of unabated development, the LNG industry is now in a position to change the worldwide background of the main natural gas markets in America, Europe and Asia. We are currently witnessing a pause in such development in the Atlantic basin, while Asia is furbishing its weapons of massive LNG development, with Australia as the new focus in a role comparable to the one Qatar just played 10 years ago. How the gas industry is swallowing the current depression in demand and prices in the various areas of the world has to do with what was achieved by countries such as Qatar and Yemen and what will be achieved when Australia eventually wakes up. To talk about the future consequences of what is maturing in Australia, representatives from Japanese buyers, IOCs already involved in the global LNG scene and European actors gathered around the LNG roundtable, to debate and to give the audience their respective points of view of the day.”
Champagne roundtable discussions are another traditional aspect of the EAGC. This year’s included discussions titled: ‘Are we approaching the next Russia–Ukraine gas crisis?’; ‘Where is the Caspian Gas going to flow?’; ‘Over-supply of gas in the short term, how will different players respond?’; and ‘Outlook for North American gas selfsufficiency: Implications for the European market’.
Technical tours arranged by Ente Vasco de la Energia (EVE) and a preevent workshop devised by Gas Strategies were introductions to the traditional EAGC ‘mix’. ‘Practical Approaches to LNG Contracting and Operating Strategies for new LNG flows to Europe’ took place on 23 November to provide a powerful platform for the exchange of ideas with respected industry players on practical approaches to adapt LNG contracting and operational behaviour in light of the market opportunities rising from the global financial crisis.
Further Information
For information about EAGC 2010 visit www.theeagc.com To find out more about Gastech 2011 exhibition and conference visit www.gastech.co.uk
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