Preparedness for possible disruptions in gas supplies 2014/2015

The European Commission presented a report on the resilience of the European gas system over the winter period of 2014-15 in light of the risk presented by the Russian-Ukrainian gas dispute.

ACT

Communication from the Commission to the European Parliament and the Council on the short-term resilience of the European gas system - Preparedness for a possible disruption of supplies from the East during the fall and winter of 2014/2015 (COM(2014) 654 final/2 of 2 March 2015).

SUMMARY

WHAT DOES THIS COMMUNICATION DO?

It contains recommendations for countries heavily dependent on Russian gas and risk being cut off from supplies.

KEY POINTS

If EU countries increase cooperation rather than rely only on national measures, more gas would be delivered and fewer customers would be cut off.

Stress tests

The EU decided to launch a series of stress tests on the gas supply system. Their aim was to determine the impact of a potential disruption of gas supplies to various EU countries, as well as to learn a lesson on how to minimise any potential negative effects.

The stress tests consisted of a simulation of two hypothetical test scenarios:

• 1.

  a complete halt of Russian gas imports to the EU;

• 2.

  a disruption of the Ukraine transit route where gas supplies from Russia enter into the European market.

The time periods used for each scenario were 1 month and 6 months.

How did the stress tests work?

• Countries had to simulate their security of supply situation in the test scenarios.
• They had to describe the concrete plans they would use to prevent a national crisis, taking into consideration the possible effects on their neighbours.

Main EU findings from tests

• Countries would have experienced different impacts depending on their location and their gas-sourcing options.
• A cooperative approach amongst European countries could reduce any negative impacts on those most affected by any curtailment in gas supply.
• A market-based approach should be the main guiding principle with other non-market measures, such as the release of strategic stocks or the switching of fuels being used when the market fails.

Recommendations

Main recommendations include:

• countries should make the best use of their storage facilities;
• there is a need to ensure the timely completion of infrastructure projects (e.g. the Slovak-Hungarian interconnector and the Swinoujscie LNG terminal in Poland);
• fuel-switching potential should be maximised (such as the use of oil stocks);
• EU countries with a gas surplus should provide assistance to others that are adversely impacted by shortages.

BACKGROUND

This communication follows up on the Commission’s European Energy Security Strategy, adopted in May 2014, which laid out a detailed plan on how to ensure secure energy supplies for Europe.

KEY TERMS:

Stress tests: these are used to test a particular system under demanding conditions.

Further information is available from the European Commission’s Directorate-General for Energy website and press release.

RELATED ACTS

Regulation (EU) No 994/2010 of the European Parliament and of the Council of 20 October 2010 concerning measures to safeguard security of gas supply and repealing Council Directive 2004/67/EC (OJ L 295 of 12.11.2010, pp. 1-22).

Communication from the Commission to the European Parliament and the Council:- European Energy Security Strategy (COM(2014) 330 final of 28.5.2014)

last update 06.03.2015