Energy Supply Security and Market Reforms

1
Energy Supply Security and Market Reforms

• Dr. Yurdakul H. Yigitguden
• Consultant, former Under-Secretary of Energy and
  Natural Resources-Turkey
• Energy in Central and Eastern Europe
• Nov. 21-22, Bucharest, Romania

2
Energy Supply Security and Market Reforms

• 1. European Energy Demand
• 2. The importance of the South East Europe and
  Black Sea Region
• 3. Energy Transmission Projects in the Region
• 3.1 Oil Pipeline Projects
• 3.2 Natural Gas Transmision Projects
• 4. Investment Climate in the South East Europe
  and the Black Sea Region
• 5.Challenges for the Market Development

3
European Energy Demand(EU-25)European Energy and
Transport Trends to 2930 update 2005, EU
Commission
4
European Energy Demand(EU-25)mtoeEuropean
Energy and Transport Trends to 2930 update
2005, EU Commission
5
South East Europe and the Black Sea Region

• Breathtaking developments since 1990
• Unique strategic location between the Northern
  Gulf, CIS and Central Europe
• A huge and fast growing market
• A pivotal role for the energy supply security of
  the EU

6
From Bilateral to Multilateral Cooperation in the
Region

• BSEC Black Sea Economic Cooperation, 1992
• SECI Southeast European Initiative,1996
• SEECP South East European Cooperation
  Process,1996
• Stability Pact for South Eastern Europe,1999

7
Regional Cooperation in the Energy Sector

• UCTE, Regional Electricity Market
• BSREC
• SEEREM,the Athens Process Nov. 2002, MoU
  Athens Dec. 2003,
• Energy Community Treaty
• Signing Ceremony Oct. 2005
  

8
Energy Transmission Projects in the Region

• Transmission projects, especially oil and natural
  gas pipelines crossing the South East Europe and
  Black Sea Region are essential for the supply
  security of Europe
• Natural gas and electricity transmission networks
  form the backbone of a functioning energy market

9
Oil Pipelines across the South East Europe and
Black Sea Region

• Baku-Supsa early oil pipeline
• CPC pipeline
• Odessa-Brody pipeline
• BTC main export pipeline
• DruzhbAdria project
• CPOT project
• AMBO project
• Burgas-Alexandroupolis project
• Samsun-Ceyhan project
• Kiyikoy-Ibrikbaba project

10
Baku-Tbilisi-Ceyhan Crude Oil Pipeline Project
INPEX
11
Oil Pipelines across the South East Europe and
Black Sea Region

• Baku-Supsa early oil pipeline
• CPC pipeline
• Odessa-Brody pipeline
• BTC main export pipeline
• DruzhbAdria project
• CPOT project
• AMBO project
• Burgas-Alexandroupolis project
• Samsun-Ceyhan project
• Kiyikoy-Ibrikbaba project

12
Natural Gas Interconnections

• Iran-Turkey
• Blue Stream
• Trans-Balkan
• South Caucasus Pipeline
• Turkey-Greece
• Greece-Italy
• Nabucco project
• Western Balkan pipeline
• Romania-Hungary
• Bulgaria-Greece-Italy

13
(No Transcript)
14
Turkey-Greece Natural Gas Interconnector Project
Turkish Section 200 km. Greek Section 85 km.
Source BOTAS
15
GAS TO EUROPE
16
Natural Gas Interconnections

• Iran-Turkey
• Blue Stream
• Trans-Balkan
• South Caucasus Pipeline
• Turkey-Greece
• Greece-Italy
• Nabucco project
• Western Balkan pipeline
• Romania-Hungary
• Bulgaria-Greece-Italy

17
Investment Demand

• Upstream
• New transit oil gas pipelines
• Modernization of the existing infrastructure
• Natural gas distribution
• Electricity generation,transmissiondistribution

18
Investment Climate

• Market reforms
• Stability
• Good governance, rule of law
• Environmental performance
• Transit regulations

19
Energy Market Reforms

• Establish a liberal energy market
• Allow the regulatory body to work independently
• Create regional energy markets to increase
  cross-border energy trade
• Introduce market prices
• Lift cross subsidies
• Regulate monopolies
• Unbundle vertically integrated utilities

20
Thank you

• yurdakulyigitguden_at_mynet.com