[22]3 Gas Pipeline Networks: the Institutional, Legal and Economic Framework for Gas Pipeline Networks in Western Europe

[22]3 Gas Pipeline Networks: the Institutional, Legal and Economic Framework for Gas Pipeline Networks in Western Europe

The situation in western Europe today is characterized by European integration on the basis of different structures in individual countries. This situation is to be seen against the background of historical developments.Depending on such factors as previous town gas production, geographical location in relation to natural gas reservoirs as well as economic and industriai policy, different structures of gas industry evolved in the countries of western Europe. Today they range from vertically totally integrated public entities protected by exclusive rights to multi-faceted free-enterprise structures. The legal framework for gas transportation in the EC is marked by the fact that the construction of pipelines requires different forms of approval in almost all EC countries. In several EC countries, companies have exclusive rights in respect of gas transportation.The framework and structures of the western European gas industry become particularly clear when compared with North America. As a result of decades of regulation and other factors, such as a large number of producers and a high degree of self-sufficiency in contrast to the few major producers in Europe and western Europe's fairly high dependence on imports, gas transportation became a separate business area for pipeline companies in the United States. In western Europe, a completely different development occurred. A typical feature of the gas industries in western European countries is the fact that gas transportation is an integral part of the overall marketing business of each gas company. Gas transportation is thus a cost factor alongside many others (such as purchase and storage costs), all of which have to be covered by the gas company's sales income.Major cross-border pipeline investments are not decided and financed on their own, but form part of the overall marketing of gas to be transported by the pipeline concerned.Differences between gas industries in western Europe need not hinder the process of economic integration, but can play a meaningful economic part because competition between the various systems helps to identify the most efficient one. It would certainly be wrong and extremely risky to try to enforce uniformity on the wide variety of structures in the western European gas industry. The existence of a certain degree of competition between the different structures may lead to an efficient, low-risk evolution of the European gas industry.: EUROPEAN INTEGRATION ON THE BASIS OF DIFFERENT STRUCTURES In today's merging western Europe, the political situation is characterized by diverse efforts towards integration or harmonization. This applies particularly to the economic sector. The completion of the single European marke

1994-05-29

Bergmann, B.

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IIVC8MDJ