Hydrogen, Gas Package & Methane emissions: GIE stands ready to support EU’s ambitions

December 15, 2021

Being on the eve of its 20’s anniversary, GIE welcomes the work of the European Commission for releasing the revision of the Hydrogen and Decarbonised Gas Market Package and its legislation on Methane emissions.

“The readiness of gas infrastructure for hydrogen and our determination to deliver climate neutrality are valuable cost-effective assets to the transition. Our almost 70 members stand ready to support the EU institutions in making this ambitious plan come true. There is quite some work on our plate, so it’s now time to roll up our sleeves and tackle together with the EU institutions the challenges ahead.” stated Torben Brabo, GIE President.

Boyana Achovski, GIE Secretary General added: “The existing gas infrastructure brings a significant number of benefits to the table. We have a strong network (capacity of 4000 TWh in transport, 1100 TWh in storage and 2000 TWh/year in import via LNG terminals in operation and affordable already today), the expertise to innovate and over 50 000 workers across Europe. It has been almost 20’s years now that we are supporting the EU institutions in their work with updated facts, figures and various transparency initiatives. We look forward to continuing to keep collaborating for an efficient transition.”

GIE members’ work:

• Enhancing the development of renewables and low-carbon technologies
• Decarbonising the hard-to-abate sectors (industry, transport, other energy-intensive applications) and heating
• Supporting the regions phasing out coal, particular in the CEE region
• Setting the EU on track for global decarbonization leadership
• Raising awareness on the technics to mitigate and monitor methane emissions

Torben Brabo reminded that: “For this transition to be successful, we need thorough analyses and a well-structured preparation. We need to make the most of the excellent network available today. GIE is aware of that and lead several studies this year. Our most recent analysis showcases the feasibility of transport of hydrogen in European gas infrastructure, the value of underground storage, the future role of the LNG terminals and how gas infrastructure supports the decarbonisation in Central- and Eastern Europe. We also looked at regulatory elements, for example how to best regulate hydrogen infrastructure or how to best use the potential of hydrogen blending”.

Boyana Achovski added: “Another crucial point is to keep a holistic and pragmatic approach. That’s why we get in conversation with multiple actors from various regions and sectors. Together, we share good practices, inspire each other and work on the development of the most efficient and integrated solutions possible. Our internal organization and experience of making proposals across the value chain (TSO, SSO, LSO) make us ready for this.”

“To succeed in the long term, public acceptance also needs to be taken on board. For that, we must provide cost-efficient and affordable solutions, and gas infrastructure can provide that. Relying on our well-developed infrastructure brings significant cost- and time advantages for the build-up of the infrastructure for hydrogen. Securing gas infrastructure balances and supports the electric infrastructure and market; secure huge socio-economic benefits to the entire EU society. Establishing a clear and simple regulation will ensure a fast, efficient and inclusive transition benefiting all EU citizens and industries” concluded Mr Brabo.

GIE’s recommendations:
For these promising efforts to keep blooming across the EU Member States, an adequate policy framework should be put in place to support the operators. This is what GIE calls for:

Hydrogen & Decarbonised Gas Market Package

The role of gas infrastructure operators and unbundling:

• The whole gas infrastructure chain has immense decade-long experience and knowledge on molecules (be it natural gas, biomethane or hydrogen and CO2);
• Gas infrastructure operators, including TSOs should be allowed to participate in decarbonisation activities, supporting the development of innovative technology facilities (including power-to-gas-facilities), in fulfilling the current EU legislation;
• Existing proven unbundling models (OU, ISO, ITO) should be extended to the hydrogen market, guaranteeing a level playing field across the Member States.

Network Planning:

• No creation of third hydrogen pillar (i.e. European Network of Network Operators for Hydrogen) besides ENTSOG and ENTSO-E to exploit synergies under the same umbrella. It takes too long to establish a new Hydrogen organization, the existing ENTSO’s already have yearlong experience, and time is essential;
• Increase cooperation between ENTSOG and ENTSO-E to foster sectoral integration, from more detailed analyses and broader scenario sensitivities (effects as the current energy crises must be minimized in the future);
• The existing ENTSOG-led TYNDP process has proven to be efficient and contributed to the development of infrastructure and the internal gas market and will be needed to ensure that investments in hydrogen are done within a long-term perspective in terms of future demand (sizing/dimensioning, location, timing)

Third Party Access and Tariffication:

• A dynamic regulation evolving with the market and infrastructure development stages, considering basic principles like unbundling, non-discriminatory Third-Party access rules and transparency from the outset, while taking into account the specifics of the hydrogen market;
• Allowing a transparent mutualisation of costs between the different parts of the wider energy system – including gas and hydrogen infrastructure – to ensure cost-reflective and stable tariffs for using the gas and hydrogen infrastructure in the long run for the benefit of all energy users;
• Support mechanisms via European or national funds should be established.

Methane emissions

Francisco Pablo de la Flor García, GIE Board member & GIE System Operation & Development Area Sponsor explained “The European gas industry has developed multiple tools to the success of the legislative process and its implementation. Raising awareness and sharing knowledge among the gas industry players is key to effectively defining effective methane emissions mitigation strategies. Emission reductions are being achieved thanks to the implementation of ambitious leak detection and repair programmes as well as the progressive reduction of venting and flaring. Technical, environmental and economic aspects are also part of the equation. Gas operators are more than ever committed to reducing CH4 emissions and supporting the Global Methane Pledge.”

Raising awareness on the mitigation and monitoring technique against methane emissions is essential to uplift the change. Numerous joint initiatives are already in place or under development, as detailed in the Action Plan on Methane Emissions that was developed after the report Potential ways the gas industry can contribute to the reduction of methane emissions. Discover the joint declaration of the GIE, ENTSOG, Eurogas, Marcogaz, Gerg.

• Raising awareness and sharing knowledge is key to having a better understanding of the methane emissions as well as to building a culture of curbing methane emissions
• Investments in MRV, LDAR and mitigation measures undertaken by infrastructure operators should be recognised within the scope of regulated activities by the national regulatory authorities
• The previous efforts of the gas companies who took early action in mitigation should be recognised and fairly accounted for.
• The most cost-efficient and most optimal methane emissions reduction actions should be prioritised
• Flexibility and recognition that one type of solution does not fit all the assets, operations and equipment along the value chains are required
• Legislation should not be very prescriptive as technologies and methods evolve very quickly

Note to editors

Who is GIE?

Gas Infrastructure Europe (GIE) is the association representing the interests of European gas infrastructure operators active in gas transmission, gas storage and Liquefied Natural Gas (LNG) regasification. GIE is a trusted partner of European institutions, regulatory bodies and industry stakeholders. It is based in Brussels, the heart of European policymaking. GIE currently represents 70 member companies from 26 countries. GIE’s vision is that by 2050, the gas infrastructure will be the backbone of the new innovative energy system, allowing European citizens to benefit from a secure, efficient and sustainable energy supply.