UK New Entrants To Gas B2B Sector

Published by: Datamonitor

Published: Apr. 26, 2006 - 18 Pages

Table of Contents

DATAMONITOR VIEW

CATALYST

SUMMARY

METHODOLOGY

ANALYSIS

Gas import infrastructure is increasingly important

Domestic reserves have declined faster than predicted.

In relying on imports, additional storage capacity is also required.

Problems with EU gas markets also do not ensure gas imports.

To date, pipeline capacity alone has not guaranteed gas flows.

LNG is important, however it will only provide marginal gas supply.

New entrants with import infrastructure need to sell their gas

Gazprom has a stake in the Interconnector and the world's largest gas reserves.

E.ON has already used its stake in the Interconnector to import gas.

To cement its place as the EU's No.1 gas transporter, E.ON Ruhrgas also participates in the BBL pipeline.

Hydro is building the longest undersea pipeline in the world to supply the UK.

The NKOTB will regard a physical supply hedge as essential to their entry strategy.

The three primary sales channels are; NBP, bilateral deals and retail supply .

They will crowd the market for the very largest consumers

To gain a physical supply position the entrants must compete for the largest buyers.

Datamonitor's gas buyer segment model splits Super Major and Intensives as the largest consumers.

The market segments with the largest consumers are however the most crowded.

The easiest place to gain a large supply volume quickly is among the Super Major buyers.

The Intensives buyer segment is the other clear target for entrant gas suppliers.

Gas supplier specialisation is high as few supply all types of MEU buyers.

APPENDIX

Ask the analyst

List of Tables

Table 1: Interconnector UK Gas Supply Pipeline

Table 2: Interconnector Gas Supply Pipeline

Table 3: The Bacton to Balgzand Pipeline

Table 4: Langeled Gas Supply Pipeline and ownership

Table 5: Gas Sales Channels

List of Figures

Figure 1: UK gas import infrastructure and projected demand growth

Figure 2: Interconnector Gas Flows and Price Arbitrage, Winter 2005/6

Figure 3: Isle of Grain LNG Gas Flows and Price Arbitrage, Winter 2005/6

Figure 4: Interconnector UK Gas Supply Pipeline

Figure 5: Interconnector Gas Supply Pipeline

Figure 6: The Bacton to Balgzand Pipeline

Figure 7: Langeled Gas Supply Pipeline and ownership

Figure 8: Datamonitor's gas buyer segment model splits Super Major and Intensives as the largest consumers.

Figure 9: Gas Supplier shares by volume across buyer segments

Figure 10: Super Major gas buyer segment

Figure 11: Intensives gas buyer segment

Figure 12: "Top Three" Supplier Specialisation Factor for gas suppliers

Abstract

• Information about issues with the UK wholesale gas market
• Roundup of the import infrastructure and its stakeholders that are coming online
• Insight regarding the likely entry strategy of HydroWingas and Gazprom into the UK
• Data on the degree of specialisation and target market segments of gas suppliers

• Consider what impact the entry of Gazprom and HydroWingas will have on the UK gas market
• Learn about the options that these entrants will have to sell their gas on
• Lay out the target segments of the UK B2B gas market for various gas suppliers

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