Student Testimonials

by Maria GEROVA – Transparency Adviser, ENTSOG

Course Objectives

The 5th edition of ERRA’s Natural Gas Training Course builds upon the previous similar training programs. It aims to give a general introduction into the gas value chain with special emphasis on upstream gas supplies. It is supposed to give a good understanding of the restructuring process of the gas industry and of wholesale markets. It puts special emphasis on regulators approaches of gas infrastructures, gas storage and security of supply issues.

During the course the following broad themes will be addressed:

Day 1: UPSTREAM GAS SUPPLY AND RESTRUCTURING OF GAS MARKETS IN EUROPE

The first day deals with the gas value chain, global picture and players, geopolitical dimension (including the role of LNG). The issues of supply and upstream; supply and midstream are discussed. Industry facts and economics of gas industry are presented together with competition between LNG and gas by pipeline. An overview of the main current and prospective suppliers is given and commercial, political and upstream factors influencing their future positioning in the European gas market is discussed.  Different market structures (Asia, US, Europe) are discussed from an LNG trader perspective to give a better understanding of LNG trade developments and certain barriers to trade. [W1] [W2]  Finally the day concludes with a simulation of energy policy.

Day 2: WHOLESALE MARKET TRADE

The day begins with discussing the evolution of demand over time with an emphasis on EU, Southeast Europe and Eurasia. The factors affecting short and long term demand for natural gas are addressed, seasonality, factors influencing gas demand by consumer groups: residential, industrial, electricity generation, etc. interruptibility of consumption is discussed. Deals with vertically integrated companies; regulatory issues at a vertically integrated industry: licensing and monitoring; end customer tariff setting; network connection and its costs; business conduct rules and consumer protection. Investigates the role of competition and (EU) competition law; the EU Gas Directives, the Third package and the main institutions involved into the enforcement of EU law in the energy sector. Introduces the role of long-term contracts, take-or-pay, volumes, pricing & oil-indexation, flexibility, nominations, defaults, supply-security, destination clauses, transits. Gas market designs: hubs, wholesale markets, price correlation; gas trading in practice. 

Day 3: ACCESS TO GAS INFRASTRUCTURES – REGULATORY APPROACHES

Focuses on the TSO function: transmission, system operation and balancing; EU unbundling regimes. Describes the European tariff setting and third party access rules to networks; exit-entry tariffs and their implementation. Practicalities of the EU Network Codes: introduces cross border trade, pipeline capacity allocation and congestion management, transit, new pipelines, quality issues. New approaches of regional gas market development are presented. Finally a case study of the Russian regulatory approach of access to infrastructure is presented.

Day 4: GAS STORAGE AND SECURITY OF SUPPLY ISSUES

Deals with security of supply in terms of short-term and long-term policies and approaches, the external dimensions, strategic stocks, pipeline projects and exemptions from TPA rules. Gas storage regulation in a restructured gas sector is presented. Security of supply issues with regards new pipeline developments, reverse flow on existing pipelines and the regulation and incentives of domestic gas production is discussed.  

Day 5: RETAIL MARKETS

The competition issues of the retail market, supplier switching process and consumer protection will be addressed. Monitoring and the role of the regulators in informing consumers about their rights, the role of transparency will be tackled. The retail market price regulation and universal supply, definition of vulnerable consumers and the institution of supplier of last resort will be presented. Social issues related to energy prices and the tools to address the problems.

Group Assignment: Throughout the course a group assignment in form of a strategic game will be played. Participants present the results and the lessons learned on the last day.

Round table discussions: Every day selected hot topics – submitted by the participants – are discussed, possibly grouped thematically along the structure of the course.