The gas chain: influence of its specificities on the liberalisation process. NBB Working Papers. No. 122, 16 November 2007

Like other network industries, the European gas supply industry has been liberalised, along the lines of what has been done in the United Kingdom and the United States, by opening up to competition the upstream and downstream segments of essential transmission infrastructure. The aim of this first working paper is to draw attention to some of the stakes in the liberalisation of the gas market whose functioning cannot disregard the network infrastructure required to bring this fuel to the consumer, a feature it shares with the electricity market. However, gas also has the specific feature of being a primary energy source that must be transported from its point of extraction. Consequently, opening the upstream supply segment of the market to competition is not so obvious in the European context, because, contrary to the examples of the North American and British gas markets, these supply channels are largely in the hands of external suppliers and thus fall outside the scope of EU legislation on the liberalisation and organisation of the internal market in gas. Competition on the downstream gas supply segment must also adapt to the constraints imposed by access to the grid infrastructure, which, in the case of gas in Europe, goes hand in hand with the constraint of dependence on external suppliers. Hence the opening to competition of upstream and downstream markets is not "synchronous", a discrepancy which can weaken the impact of liberalisation. Moreover, the separation of activities necessary for ensuring free competition in some segments of the market is coupled with major changes in the way the gas chain operates, with the appearance of new markets, new price mechanisms and new intermediaries. Starting out from a situation where gas supply was in the hands of vertically-integrated operators, the new regulatory framework that has been set up must, on the one hand, ensure that competitive forces can be given free rein, and, on the other hand, that free and fair competition helps the gas chain to operate coherently, at lower cost and in the interests of consumers, for whom the stakes are high as natural gas is an important input for many industrial manufacturing processes, even a "commodity" almost of basic necessity

Russian and Caspian hydrocarbons: energy supply stakes for the European Union

The crisis between Russia and Georgia in August 2008 highlights the fragility and instability of transporting gas from the Caspian and Central Asia to Europe via the "Caucasus transit corridor". The feasibility of one of the EU's possible strategies for diversifying its energy supplies might now be called into question. The aim of this article is to examine the new strategies that could emerge in the producing countries as well as those of international oil companies, and then look at what the consequences might be as far as the EU's diversification strategy is concerned.ENERGY SUPPLY ; HYDROCARBONS ; DIVERSIFICATION STRATEGY ; EUROPEAN UNION ; CASPIAN ; RUSSIA ; INTERNATIONAL MARKET

Trade in Energy Services - GATS and India

Energy plays a vital role in the development of any economy and given its unequal distribution trade in energy, especially fossil fuels, is an important component of international trade. In the past, due to its public good characteristics, energy-related services were mostly supplied by the government. With liberalization and globalization the sector underwent significant transformation. Many new services developed and large multinationals emerged which increased global trade in energy services. Energy services is now an important component of all trade agreements. In the above context, this paper examines Indias opportunities and constraints to trade in energy services within the GATS framework. The study found that India has the capability of exporting high-skilled manpower at competitive prices but is facing various market access, discriminatory and regulatory barriers in markets of export interest. With the entry of energy producing countries such as Saudi Arabia into the WTO, the Doha negotiations provide an important platform to offensively push for liberalization in this sector. India needs foreign investment, technical know-how and international best practices in energy. The country has progressively liberalized this sector and there are no major entry barriers. However, India has not been successful in attracting large foreign investment and technology. This is due to various domestic barriers which make it difficult to set up a competitive operation. The study lists the reform measures which will help the sector become globally competitive, protect the interests of consumers and meet the energy needs of society. Since this sector is sensitive and is closely monitored by governments across the world, government-to-government collaborations would ease the entry process for Indian companies in foreign markets, diversify our energy resource base and improve energy security.GATS, Energy, trade, India & the WTO