Gas Emergency Policy: Where Do IEA Countries Stand?

Gas Emergency Policy: Where do IEA Member Countries Stand?

Introduction

In October 2009, the IEA Governing Board agreed that the IEA should help member countries improve their preparedness for gas supply disruptions and coordinate emergency responses. This Information Paper summarizes the results of a questionnaire on natural gas emergency policies and practices.

Background

The questionnaire aimed to collect information on the emergency preparedness of IEA member countries, focusing on natural gas security. It sought to understand the functioning of countries' gas markets during crises and assess their preparedness. The Secretariat developed a "scorecard" to evaluate and compare the levels of preparedness using numerical criteria.

Supply

Most IEA member countries rely on imports to meet their domestic gas needs. Six countries are not dependent on imports, with five being net exporters. Eight countries are 100% import dependent, while 16 have an import dependence exceeding 90%. High levels of dependence are primarily found in Europe and Asia, particularly Japan and Korea. North American, Oceanic, and some North Sea countries are less reliant on imports due to abundant gas resources.

• Import Dependence: Figure 1 shows the percentage of natural gas import dependence for various countries. Only 2 countries expect an increase in domestic supplies in the next 5 to 10 years, while 16 countries anticipate growing dependence on foreign imports. Notably, the UK's import dependency increased from almost self-sufficient to 40% of annual demand over the past five years. The US has reduced its import dependency due to growth in unconventional gas production.

• Diversified Sources: Most countries benefit from diversified sources of imported gas, especially those dependent on LNG supplies in Asia and Europe. However, Eastern European countries, from the Baltic to the Balkans, are highly exposed to a single supplier, primarily Russia.

Demand

Gas accounts for over 10% of total primary energy supply (TPES) in 26 out of 28 IEA member countries. In 16 countries, gas contributes more than 20% of TPES, and in seven countries, the share exceeds 30%. The power sector is a significant consumer of gas, driving demand.

Storage

Storage capacities vary significantly among countries. Figure 2 illustrates the importance of natural gas in the energy mix, and Figure 3 shows storage capacities as a percentage of annual demand. Figure 4 highlights storage capacities relative to net imports, and Figure 5 displays storage send-out capacities compared to peak demand. External infrastructure resilience is crucial, with import diversity playing a key role in mitigating risks.

Policies and Emergency Measures

The paper provides an overview of gas emergency policies in IEA member countries, highlighting the diverse approaches taken to ensure security and resilience. These measures include diversification of supply routes and suppliers, strategic storage, and regulatory frameworks to manage market disruptions.