Soren Juel Hansen

Securing natural gas’ future in the world of renewable energy

“Gas can be renewable”

Søren Juel Hansen, Head of Tariffs and Infrastructure at Energinet.dk, recently spoke with the European Gas Conference about the need for investments in European interconnectors, the Danish transition to renewable energy sources and the future of the natural gas industry, working alongside renewable gases.

“European gas supply is secure and diversified”

Mr Hansen explained that gas supply outstrips demand in Europe which means Europe is in a favourable position.  “However, some regions, including the Baltic States and Finland, some Eastern European countries and the Swedish-Danish gas market require better connections and new investments in European interconnectors and supply diversification”.  Mr Hansen then went on to explain that as Europe’s own reserves decrease supply diversification will happen as a matter of course.

“Our biggest short term challenge is to secure sufficient capacity to avoid bottlenecks and distortion of markets”

Mr Hansen said the biggest short term challenge for Energinet.dk is to secure sufficient capacity to avoid bottlenecks between the Swedish-Danish gas market and the North West European gas market in the Ellund connection point towards Germany.  “Expansion projects have been agreed, but processes for a second step decision in Germany to meet the demand documented in the German and Danish open season in 2008-2009 must be mapped to avoid future bottlenecks”.

“Our long term challenge is to make a roadmap for conversion to renewable gas”

Mr Hansen said that the Danish Government is working towards a fully renewable energy system by 2050, and all electricity and heat will come from renewable sources by 2035.  Denmark will say farewell to coal and increased energy efficiency, wind and other renewable energy sources will cover much of Denmark’s energy requirement.  However, there is not enough flexibility and therefore natural gas becomes an obvious partner to help fill this gap.  “We are working towards a gradual shift towards biogas and other renewable gases. Sweden and Germany are in the lead now on increasing production and demand of renewable gas, and I expect the rest of Europe to follow the same path”.

Mr Hansen said we need a long term roadmap for making gas renewable as future consumers, voters, investors and politicians will not depend on fossil fuels.

“A secure, fair and effective level playing field”

“A strong EU Commission driven energy policy can secure a fair and effective levelled playing field, better conditions for cross border investments and increased trade, supported by coordinated emergency supply”.  Mr Hansen cited the EU-supported Ellund-Egtved expansion project as an example of this.

“Gas can be renewable”

Mr Hansen is speaking at The European Gas Conference in Vienna next month where he is looking forward to speaking about the relationship between natural gas and renewable gas.  He said he hopes to convince the audience that renewable gas is not a threat, but rather that it provides an argument for investing in natural gas, the gas supply network, new technologies, for example the integration between heat, electricity, gas and renweables.

Mr Hansen explained that the gas industry has a unique opportunity to demonstrate that natural gas can deliver the flexibility needed by a future renewable energy and power system and that gas can be renewable.  Mr Hansen finished by saying he firmly believes the natural gas sector has a better future working alongside renewable energy that it does without it.

Speakers joining Mr Hansen at the European Gas Conference include:

  • Reinhold Mitterlehner, Federal Minister of Economy, Family and Youth, Austrian Government
  • Sergei Komlev, Head of Directorate, Contract Structuring and Price Formation, Gazprom Export
  • Marcel Kramer, Chief Executive Officer, South Stream
  • Stuart Bradford, Head of Strategy, Marketing & Analysis, Shell Energy Europe
  • Valery Nemov, Contract Structuring and Price Formation, Gazprom Export
  • H.Haken Unal, Expert, Gas Transmission Management, BOTAS
  • Walter Pareraer, CEO, Fluxys
  • Kjetil Tungland, Managing Director, Trans Adriatic Pipeline AG
  • Paul Corcoran, Finance Director, Nord Stream
  • Reinhard Mitschek, Managing Director, Nabucco Gas Pipeline International GmbH

Event dates and location:
24 January 2012:  Global LNG Day
25-26 January 2012:  Conference days
27 January 2012:  Post-conference master class
Location:  Vienna Marriott Hotel, Parkring, Vienna, Austria

Event website: www.europeangas-conference.com

For more information, interviews and media accreditation:
Communications manager:  Annemarie Roodbol
Tel.  +27 21 700 3558     
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