Molecules – The Eurogas Newsletter (June 2021)

Editorial: Didier Holleaux, Eurogas President

Dear readers,

I am delighted to write this editorial in my first month as Eurogas President. The coming two years will be crucial for Europe’s decarbonisation path and already are a challenging time for the energy sector. Nonetheless, the gas industry will work hard to contribute to this decarbonation and face these challenges by building on the achievements of the association under the guidance of my predecessor, Philippe Sauquet.

Every Eurogas member will play a role in delivering on 55% emissions reductions by 2030, and carbon neutrality soon after 2045. Those commitments are well established within Eurogas, and we are working to secure the framework to achieve them. For example, we have joined 14 cross-sector associations calling for binding 2030 targets to reduce the greenhouse gas intensity of gas consumed in Europe by at least 20%, and increase the uptake of renewable gases to at least 11%. The idea of such targets is now growing in strength amongst policy makers.

This example of working with other associations and partners will be a central pillar of my Presidency. Eurogas has much to offer in the delivery of a framework for achieving our common climate goals. As the Chair of the European Parliament’s ITRE committee, MEP Cristian-Silviu Bușoi, said at a Eurogas Let’s Meet event this month, “we must be objective about the role of gas”. While we work to accelerate the transition to climate neutrality by optimising the use of gases, Eurogas will remain committed to broad stakeholder dialogue based on science and evidence. Working together with all stakeholders who share our enthusiasm for tackling the climate emergency is clearly key to reaching our targets in the most efficient and cost-effective manner.

The role of gas and gaseous fuels is to be defined in the coming months by the European Commission’s much-anticipated gas decarbonisation package. It is another of my priorities to make sure that Eurogas and its members support the delivery of an enabling framework for the full decarbonisation of gas over the next decades. At the same time we must be pragmatic and recognise the potential for coal and oil to gas switching, balancing renewable electricity, and decarbonising industry and buildings. We fully support the Commission approach to Energy Sector Integration, as we believe it will minimise the cost of energy transition to European citizens.

I am also determined to ensure Eurogas does its part to deliver a Just Transition. While we ramp up efforts on legislative developments, we will continue working closely with our social partners, the Trade Union representations: EPSU and IndustriAll Europe. Our ongoing joint study on jobs in the sector is mapping the skills needed across Europe to make sure industry and workers are ready for the upsurge in new technologies needed to get through the transition.

Looking back over 30 years working in the energy industry, I have no doubt that change can be realised. Today’s climate and economic crises are indeed grave but looking across the sector it is clear we have the technologies needed to get through this. With the right framework we will decarbonise our energy system at a reasonable cost and create jobs across Europe’s regions in the process.

I am very much looking forward to working with all of you on these critical issues in the coming years.

Regards,

Didier Holleaux
Eurogas President

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Introduction to the HOLDIGAZ Group

HOLDIGAZ group’s diverse skillset and expertise allow us to provide comprehensive energy advice and tailor-made services to private clients and businesses. We do this across the areas of natural gas and biogas distribution, the production and injection of biogas, as well as solar energy and building technology.

Our investments in renewable energy over the last several years have followed the example set by Switzerland’s Energy Strategy 2050, which was adopted by public vote.

The company is vigorously supporting the development of biogas by increasing the number of production and injection sites within its networks. Several facilities make biogas from food and biological waste or from sewage sludge. Other sites are currently being built or are planned for the future.

To increase the population’s access to renewable gas, the company is joining forces with both national and international partners in an effort to import liquefied biomethane. The aim is to inject the substance directly into its distribution network, and make Bio-LNG available for heavy transport.

In addition to its renewable energy approach, the group has offered 100% CO2-neutral natural gas to its customers since 2019, thanks to a carbon offset project with a Swiss organisation that is a specialist in the field. As part of this approach, HOLDIGAZ offsets 100% of the CO2 emissions of the gas it supplies to its customers up to its end use in heating, cooking, transport or industrial processes.

Partnering with Eurogas has allowed HOLDIGAZ to access an international network of skill sets in the gas sector, to track the issues encountered on the European markets and to benefit from enriching exchanges, all in support of the energy transition in Switzerland, which is now under active review by the country’s authorities.

We share Eurogas’ vision for a robust European gas market that supports energy efficiency, the reduction of CO2 emissions and the development of renewable energy, all while encouraging competitiveness, enhancing security of supply and delivering benefits to customers.

Eurogas’ drive to optimise the role of gas in the energy mix of tomorrow through ongoing dialogue with European industry players and relevant institutions seems a worthy goal to pursue. HOLDIGAZ is pleased to be able to join forces with Eurogas thanks to its admission as a Eurogas member.

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Vermilion Energy joins Eurogas

Vermilion Energy is present across North America, Europe and Australia, and active in the efforts to reach carbon neutrality in all those geographies.

As the energy transition progresses, the challenges become evident. In many cases, Europe’s electricity infrastructure will not be sufficient, decarbonisation of power production will be challenging, and we will need to keep an eye on security of supply.

Natural gas is indispensable in the journey to net zero. It is needed for flexibility and storage in an efficient, cost-effective transition. Energy from natural gas has the smallest emission footprint of all fossil fuels, making domestic production an important source that boosts liquidity on the European gas market and provides security of supply.

With this in mind, Vermilion acquired assets in France in 1997 and expanded this position with subsequent acquisitions in 2006 and 2012. A first step into the Netherlands was accomplished in 2004. In fact, we have become the second largest onshore operator in the Netherlands. In 2014, Vermilion entered Germany through an acquisition, and this has been followed by additional asset acquisitions in 2017 and 2021.

In 2014, Vermilion was awarded its first concession in Hungary, representing Vermilion’s initial entry into Central and Eastern Europe. Since then, we have grown our position in Hungary, and added concessions in Croatia and Slovakia to the portfolio. In 2017 Vermilion took over operatorship from Shell of the Corrib gas field in Ireland in partnership with Canada Pension Plan Investment Board. We prioritise health and safety across our operations and emphasise strategic community investment in each of our operating areas.

We know that natural gas is needed to guarantee supply of energy and ensure energy affordability. It is an essential part of the energy transition. As a natural gas producer, we are working to be part of a low-carbon future by building on our competencies, repurposing our infrastructure and kickstarting the hydrogen economy.

Vermilion Energy is looking forward to working with Eurogas and its members to promote natural gas as an enabler of the future energy system.

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Motor Oil Hellas In Numbers

The word mathematics comes from the Greek work μάθημα, which we pronounce máthēma. In Ancient Greek this translates roughly to ‘what one learns,’ but today it translates simply to ‘lesson’.

For this article, our first since becoming a member of Eurogas in March 2021, we wanted to share some numbers with you, how they influence our work, and what we are learning.

For example, fifty and eight-two. This is how many years we have been operating; and how many companies make up the Motor Oil Hellas Group, covering refining and distribution as well as power, gas, renewables and alternative fuels.

Six billion, this was our turnover in Euros in 2020. One thousand four hundred: that’s the number of gas stations we operate across Greece, Cyprus and Southeast Europe region.

Ten percent is Motor Oil Group’s share of national gas consumption in Greece. And 0.5 bcm is the extent to which our natural gas operations grew last year, through trading and LNG imports.

Finally, two thousand two hundred and fifty eight is the most important number, because it is the number of our employees. Each of those is important to our daily operations.

But our daily operations are changing. Our business strategy increasingly focuses on the evolution of the energy transition and the development of sustainable energy, for example alternative fuels for mobility.

In 2018 and 2019 we also made investments into wind and solar energy. However, one of our most important developments is the new Dioriga Gas LNG import terminal.

The MOH Group is currently developing this terminal, which includes a floating storage and regasification unit (FSRU), at the refinery premises area near Athens.

When operational at the end of 2023, this terminal will offer a new natural gas gateway to serve the growing gas market across both Greece and the Southeast Europe markets by providing access to the global LNG supply network.

As a result, the Dioriga Gas FSRU LNG terminal will significantly enhance security of supply, diversify our supply sources, and improve market competition at both national and regional level, with considerable benefits for the end users.

The LNG barge-reloading and truck-loading facilities of Dioriga Gas FSRU will enable the dynamic development of the bunkering and small-scale LNG activities in Greece. It will bring natural gas to the maritime sector and to areas non-interconnected to the national natural gas transmission system like Peloponnese, Western Greece and Greece’s multiple islands. Due to its strategic positioning in the heart of the transmission system, the new LNG terminal will also increase the system’s operational flexibility.

Through our changes, we are learning. If we look at the numbers, achieving carbon neutrality will only be possible through the use of natural gas, as the most cost-effective enabler of emissions reductions. Throughout Southeast Europe, countries are transitioning from using coal and high-polluting fuels to more sustainable, to lower carbon solutions.

Through the partnership with Eurogas, Motor Oil Group intends to participate to the ongoing dialogue about the significant future role of gas in Europe. We want to cooperate with the key players of the European gas industry, and further develop natural gas markets in Greece and the wider Southeast Europe region, offering an alternative to coal and support with emission reductions.

Most of all, we look forward to what we can learn as we work together at this crucial time in the energy transition.

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Gas Tech Talk: Kayrros, Satellites successfully detecting methane emissions

Satellite systems are being used successfully by Kayrros to detect value chain methane emissions and allow energy companies to manage them. As the EU works on its Methane Strategy, it is important that legislation harnesses the potential of such solutions. To support this, points to consider include:

• The need for recognition of the fast-changing nature of relevant technologies like satellite detection for onshore and on the ground mobile sensors commonly used for distribution networks.
• Variations along the value chain, such as the characteristics of assets and equipment, should be catered for. Blanket obligations in leak detection and reporting will not work.
• Monitoring, reporting and verification (MRV) methodologies will need to be harmonised. OGMP 2.0, as one example, has proposed a voluntary template, which could be made compulsory.
• While harmonisation of methodology and reporting templates will ensure higher comparability, flexibility should still be left between countries on the measures they implement to address emissions depending on their systems.
• Synergies – for example, between data captured for leak detection and its potential for developing monitoring, reporting and verification systems – should be supported by the legislation.

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Events – Coming up

European Gas Tech: Delivering on 2050 | 2 September 2021

Green Hydrogen Conference | 20 July 2021

World Hydrogen Leaders ‘World Hydrogen Policy’ Conference | 28 July 2021

SPARK | 14-15 September 2021

St. Petersburg International Gas Forum | 5-8 October 2021

ees Europe Restart 2021 | 6-8 October 2021

LNG Bunkering 2021 | 7-8 October 2021

HyVolution 2021 | 27-28 October 2021