Gas Advocacy

The energy sector is set to face increased challenges that will lead to structural changes in the natural gas market. The mitigation of climate change has become one of the most important political issues, as well as security of supply and access to energy at reasonable prices.

In this framework, the aim of Task Force 2 is to show and endorse the essential role of natural gas in the energy system’s forthcoming transformation.

Natural gas is commonly recognized as the most environmentally friendly, affordable, reliable, efficient and secure fossil fuel; accordingly, the present and potential role of natural gas has to be recognized in policy debates. It is necessary to further reinforce the characteristics of natural gas and to underscore its role as a fuel that promotes both growth and decarbonisation.

Task Force 2 has been established to coordinate the efforts to endorse, to promote and to be the “voice” of natural gas in the institutional and regulatory forums of interest. To be efficient in this process, it is important to elaborate a general IGU vision on the role of natural gas and subsequently modulate messages taking into account a framework based on the following basic elements:

• Structure of the energy market, with particular reference to factors such as the maturity of the market, degree of regulation, gas to gas competition and inter-fuel competition.
• Cultural evaluation of natural gas (taking into consideration the direction of the analysis done by PGC E in the previous triennium).
• Type of stakeholder; e.g. National Authorities, Governments, Financial Institutions.

Considering the fundamental role of natural gas as a key fuel in the energy mix in the long term, TF2 intends to stimulate the debate on the:

-  Role of natural gas in the fuel mix. The characteristics of natural gas make this fuel an important player in the future fuel mix. Affordability and reliability are features crucial in those markets where access to energy is a main issue. Where competition is a central element, the flexibility of natural gas could be a strategic factor. Finally, natural gas is a viable fuel even in those economies that are going to face the challenge of decarbonisation, as natural gas represents the ideal partner for renewables.

-  Role of natural gas for security of supply and, consequently, the centrality of upstream and infrastructural investments and proper regulation (with a particular focus on relations between bankability of investments and security of supply).

-  Policies with direct and indirect impacts on inter-fuel competition. The design of incentives to RES and mechanisms for the evaluation and the trading of CO₂ emissions, as well as the policy on the technological research and the configuration of the fuel taxation, could have strong impacts on the natural gas market.

-  Technological development. Investments in technologies such as carbon capture and storage, residential gas heatpumps and biogas are important for the forthcoming transformation of the market.

During this triennium, Task Force will aim at internally developing in IGU through the individuation of area representatives, a strong collaboration with technical entities and constant relations with PGC E for communication activities.

Outside IGU, the main objective will be the reinforcement of relations with institutional stakeholders. We intend to present the IGU vision on the role of natural gas in the energy mix to National Authorities, Governments, Financial Institutions, Regional Bodies and all the structures that, in the different areas, play a role in the definition of the energy policy. Furthermore, Task Force 2 will prepare positioning documents for the key moments of the decisional process (e.g. public consultations).

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