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Belgium

Table of Contents
  1. 1. Introduction
  2. 2. Key Statistics
  3. 3. Gas Demand
    1. 3.1. Total Primary Energy Comsumption by fuel
    2. 3.2. Gas demand by sector
  4. 4. Gas Supply
    1. 4.1. Gas reserves
    2. 4.2. Gas imports
    3. 4.3. Gas exports
  5. 5. Gas Infrastructure
    1. 5.1. Gas Grid
    2. 5.2. LNG
    3. 5.3. Storage
  6. 6. Gas Market Regulation
    1. 6.1. Upstream
    2. 6.2. Network
    3. 6.3. Downstream

1. Introduction

The Kingdom of Belgium is situated in the north western part of Europe and is bordered to the north by the Netherlands and the North Sea; to the east by Germany and Luxemburg; to the south and west by France. Belgium has a total surface of 30,528 square kilometers (11,787 sq mi) and is inhabited by approximately 11 million people (2011 estimate) Belgium is a founding member of the European Union and hosts its headquarters in Brussels, as well as those of other major international organizations, including NATO. In 2011, the country ranks 31st in the world on total GDP against Purchasing Power Parity (414.32 billion US$; IMF estimate) and 21st when ranked on nominal GDP (467.78 billion US$; IMF estimate). When measured per capita it ranks even higher. [1]

In 2010, Belgium is the 8th largest natural gas consumer in the EU with an estimated total of 20,283 mcm. Belgium is also the 8th largest importer of natural gas with an estimated total of 20,826 mcm in 2010. In 2010, Belgium has a natural gas supply per capita of 1.611 which is the 3rd highest natural gas supply per capita in the EU after the Netherlands and Luxembourg. [2]  

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2. Key Statistics

Basic Gas Facts - Belgium
Basic Gas Facts 2006 2007 2008 2009 2010e
Gas reserves (bcm) .. .. .. .. ..
Gas production (mcm) .. .. .. .. ..
Gas consumption (mcm) 17529 17660 17540 17712 20283
Gas imports (mcm) 17618 17464 18175 21098 20826
imports pipeline (mcm) 13410 14795 15140 14541 14418
imports LNG (mcm) 4208 2669 3035 6557 6408
Import dependency (%)* 100.50% 98.89% 99.56% 99.01% 100.13%
Gas exports (mcm) - - 711 3560 517
Natural gas supply per capita (toe) 1.423 1.405 1.385 1.4 1.611
Technically recoverable shale gas resources (bcm) .. .. .. .. ..
Coal Bed Methane reserves** .. .. .. .. ..
c = confidential; - = nill; ..= not available
* Imports dependency of natural gas = (imports - exports) / consumption
**Proven & Probable (2P); U.S. Environmental Protection Agency, Coalbed Methane Outreach Program
Sources: Natural Gas Information © OECD/IEA, 2011, EIA Analysis & Projections, GMI/EPA Coal Mine Methane Country Profiles

[1], [2], [3]

Basic Energy Facts - Belgium
Basic Energy Facts 2006 2007 2008 2009 2010e
Total Energy Consumption (mtoe) 58.11 57.03 58.58 57.22 56.8
CO2 Emissions, energy-related (Mt) 150 149 110.96 100.7 ..
CO2 intensity, energy-related (tCO2/toe) 2.48 2.59 1.89 1.76 ..
Energy consumption per capita (toe/cap) 69.43 69.30 73.41 .. ..
CO2 per capita, energy-related (tCO2/cap) .. 8.38 8.31 7.58 ..
c = confidential; - = nill; ..= not available
Sources: Natural Gas Information © OECD/IEA, 2011 & EIA International Energy Statistics

[1], [4]

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3. Gas Demand

This section explores total primary energy consumption (TPEC) and gas demand by sector for Belgium.

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3.1. Total Primary Energy Comsumption by fuel

In 2010, Belgium’s TPEC amounted to an estimated 56.8 mtoe, which is a very small decrease (0.73%) compared to 2009. Oil accounted for 21.76 mtoe, while coal and gas accounted for 1.91 mtoe and 17.49 mtoe respectively. Other fuels accounted for 15.64 mtoe, which is 27.5% of the total of which 22 percent point nuclear (all are estimates). [1]

*other: hydro, geothermal, solar, wind, electricity & heat, biofuels & waste

[1]

*other: nuclear, hydro, geothermal, solar, combustible and renewable waste

[1]

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3.2. Gas demand by sector

In 2010, Belgium consumed an estimated total of 20,283 mcm of natural gas (less than 1% of the world total); about 15% more than in the previous year. In 2009, Belgium consumed a total of 17,712 mcm of natural gas, not even 1% more than in 2008. Of its consumption in 2009, 5,836 mcm were used for transformation and 4,682 for industry (excluding the energy industry itself, which used 17 mcm), while 6,180 mcm was consumed by other sectors.*

Transformation includes the generation of electricity, while the demand from the ‘Industry’ refers to gas used for such things like the chemical-, iron and steel- and machinery industry. The demand from the ‘Energy Sector’ refers to gas used for the extraction of coal, oil, and gas and gas used in refineries, coke ovens and gas works. [1]

*other: commerce and public, residential, agriculture, non-specified

[1]

*other: commerce and public, residential, agriculture, non-specified

[1]

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4. Gas Supply

This section deals with gas reserves, gas imports and gas exports.

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4.1. Gas reserves

Belgium has very little gas reserves; the country depends almost completely on imports for its gas consumption.

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4.2. Gas imports

Imports by country - Belgium
By country of origin (in mcm) 2006 2007 2008 2009 2010e %Total 2010
Germany - - - 168 395 1.89%
Netherlands 6405 6917 6835 6139 5395 25.90%
Norway 5410 5800 6522 6310 6314 30.31%
UK 566 927 559 730 1068 5.13%
Algeria 2989 387 - - - -
Equatorial Guinea - - 84 88 172 0.83%
Malaysia 76 - - - - -
Nigeria 161 - - 86 166 0.80%
Qatar 427 2205 2775 6055 5898 28.32%
Russia 710 794 852 492 458 2.20%
Trinidad and Tobago 155 77 79 158 - -
Other/non-specified 719 357 469 872 960 4.61%
Total 17618 17464 18175 21098 20826 100%
%Total Consumption 100.50% 98.89% 103.62% 119.11% 102.67% -
c = confidential; - = nill; ..= not available
Source: Natural gas information 2010 & OECD/IEA, 2010

[1]

Imports by transport type - Belgium
By transport type (in mcm) 2006 2007 2008 2009 2010e %Total 2010
Pipeline imports 13410 14795 15140 14541 14418 69%
LNG imports 4208 2669 3035 6557 6408 31%
Total 17618 17464 18175 21098 20826 100%
%Total Consumption 100.50% 98.89% 103.62% 119.12% 102.68% -
c = confidential; - = nill; ..= not available
Source: Natural Gas Information © OECD/IEA, 2011

[1]

In 2010, gas imports accounted for 102.68% of the total natural gas volumes consumed in Belgium (estimated). 69% of all gas imports were accomplished via pipeline and 31% via LNG (estimated). Most of the gas pipeline imports originate from The Netherlands, Norway and the UK. LNG mostly came from Qatar. The share of Holland in Belgium’s gas imports decreased in 2010 to 25.91% and the share of Norway increased slightly to 30.32%, while the share of UK gas also increased (to 5.13%). The share of Qatari gas in Belgium’s imports increased slightly to 28.32%. From 2007-2008, the LNG volumes imported from Algeria started to be replaced by gas imports originating from Qatar.

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4.3. Gas exports

In 2010, Belgium exported 517 mcm of natural gas, most of which went specifically to Korea and Spain.

Exports by country-Belgium
By country of origin (in mcm) 2006 2007 2008 2009 2010e %Total Exports 2010
Korea - - - - 84 0.16247582205
Spain - - 176 78 78 0.15087040619
Other - - 141 157 169 0.326885880077
Non-specified/Other - - 394 3325 186 0.359767891683
Total - - 711 3560 517 1
%Total Production - - 0.00403230380091 0.0217380684871 0.00323080576421 -
Source: Natural Gas Information © OECD/IEA, 2011

[1]

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5. Gas Infrastructure

This section deals with the gas grid, LNG terminals and storage facilities.

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5.1. Gas Grid

Pipelines

In Belgium, Fluxys is the owner and operator of the natural gas transmission grid (approx. 4000 km) and storage infrastructure. The Fluxys network is used for both transporting natural gas for internal consumption as well as shipping transit volumes to foreign markets. Yearly, Fluxys transports around 17 bcm of natural gas for internal consumption in Belgium, while approximately 80 bcm of capacity is reserved for transit purposes on the long term. Fluxys’ network also has 18 entry points, bringing to the Belgian market gas flows from the UK, Norway, the Netherlands, Russia and various LNG producing countries. The grid also serves as the crossroads for transit flows of natural gas to the UK, Germany, Luxembourg, France, Italy and Spain.[1], [2]

 

Gas Infrastructure Projects

There are two proposed infrastructure projects at the moment in Belgium which both concern additional compressor stations (see table).

Infrastructure proposed-Belgium
Project Type Sponsors Total Length (km) Diameter (mm) Technical Cap. Pipes** Power of CS(s) (MW)*** Sources Expected Benefits
Fluxys Infrastructure Projects - Winksele Compressor Stations Fluxys N/A N/A N/A 70 N/A SoS**** (bi-directions)
Fluxys Infrastructure Projects - Berneau Compressor Stations Fluxys N/A N/A N/A 24 N/A SoS**** (bi-directions)
Source: ENTSOG Ten Year Network Development Plan 2011-2020
[2]

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5.2. LNG

At the end of 2010 there was one LNG regasification terminal operational in Belgium: Zeebrugge. Fluxys is the owner and operator of the Zeebrugge trading hub and the Zeebrugge LNG terminal. The Zeebrugge terminal has a storage capacity of 380.000 m3 and a send out capacity of 9.5 bcm/ year.

LNG existing - Belgium
Site Storage - Regasifcation - - Owner Operator TPA Start-up Source of import Status
- #Tanks Cap.* Max. Hourly Cap. (mcm) #Vaporizers Cap** - - - - - -
Zeebrugge 4 380 1.7 11 9.5 Fluxys LNG FluxysLNG Yes 1987 Qatar, Egypt, Norway, T&T, Nigeria E
c = confidential; - = nill; ..= not available
E = existing; U = under construction; P = proposed
* capacity in m3 x1,000 of LNG
**nominal capacity in bcm/year of gas
Source: Natural Gas Information © OECD/IEA, 2011, GIIGNL 2010 & Gas Infrastructure Europe: GLE LNG Map 2011

Fluxys LNG intends to construct a second jetty at the Zeebrugge liquefied natural gas terminal, the aim being to enable the mooring of regasification ships (ships that regasify the LNG onboard). Exmar, a pioneer in LNG regasification ships has expressed its intention to contract long term capacity with Fluxys LNG.[1], [2]

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5.3. Storage

In August 2011 there was 1 operational storage facility in Belgium: an acquifer with a technical storage capacity of 675 mcm and 14.4 mcm/day withdrawal capacity and a 7.8 mcm/day injection capacity.

Storage existing - Belgium
Nr. Facility name Operator Storage Capacity (mcm) Withdraw (mcm/day) Injection (mcm/day) TPA* Type
1 Loenhout Fluxys 675 14.4 7.8 R Aquifer
Total - - 675 14.4 7.8 - -
* Third Party Access: Regulated ( R) - Negotiated (N) - Hybrid (H) - Not Applicable (X)
Source: Gas Infrastructure Europe: GSE Storage Map 2011

[1]

In addition to the existing storage capacity, from August 2011 there was 1 projected storage facility in Belgium (also Loenhout) with a technical storage capacity of 25 mcm.

Storage proposed - Belgium
Nr. Facility name Operator Storage Capacity (mcm) Withdraw (mcm/day) Injection (mcm/day) TPA Type
1 Loenhout Fluxys 25 2.4 - - Project / Aquifer
Total - - 25 2.4 - - -
TPA: Regulated ( R) - Negotiated (N) - Hybrid (H) - Not Applicable (X)
Source: Gas Infrastructure Europe: GSE Storage Map 2011

[1]

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6. Gas Market Regulation

This section deals with the gas market regulation in upstream, the transmission grid and downstream.

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6.1. Upstream

The Zeebrugge entry zone (LNG terminal, Zeepipe terminal and Bacton-Zeebrugge Interconnector) is where the main gas volumes are imported into the Belgian market, it is also the place where the hub for short-term gas trading is located. In 2007 about 47.1% of Belgium’s gas imports came through the Zeebrugge area. Fluxys is the operator for the entire infrastructure there. In 2008, the total amount of throughput capacity of the Zeebrugge LNG-terminal was doubled to 9.5 bcm. The historical supply contract that Belgium had with Algeria of 4.5 bcm of capacity ended, allowing three new shippers to sign contracts for up to 20 years for the available capacity of 9.5 bcm. In parallel, trades on the secondary market have also been established. In 2009 there were about 26 companies holding licenses at federal level for the transport of natural gas on the grid. Ten of the above companies are active on the Belgian wholesale market. However, most of the gas for the Belgian market is being delivered by three companies: Distrigas S.A. (78.2%), Gaz de France Négoce (15.2%) and Wingas GmbH (6.0%). [1]

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6.2. Network

The Belgian transportation and transmission market is fully liberalized. CREG is the national regulator responsible with the TPA regime for the transmission, storage and the LNG terminal infrastructure. CREG is also responsible with regulating the tariffs for distribution, transmission, storage and the LNG terminal. Regional regulators are responsible with the TPA regime on the distribution grids (VREG for Flanders, BRUGEL for Brussels and CWAPE for Wallonia). Distrigas split up in 2001 and created a new transport company: Fluxys. Fluxys’ shareholders structure was as follows: 45% Suez-Tractabel, 45% Publigas (made up of municipalities) and 10% free float. The Belgian state holds one Golden Share* in Fluxys while most of the shares of Distrigas former trading partners (also called Distrigaz) were taken over in 2008 by Italy’s ENI. From May 2007, Fluxys became the system operator of the transmission grid, the natural gas storage facilities and the LNG-terminal. These DSOs in Belgium are legally unbundled with Electrabel having a participation in about 80% of them. The municipalities are controlling the rest of the DSOs active in Belgium. [1]

*A golden share is a nominal share which is able to outvote all other shares in certain specified circumstances, often held by a government organization, in a government company undergoing the process of privatization and transformation into a stock-company. [2]

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6.3. Downstream

The Belgian downstream gas market has been completely open since January 1st 2007 and there are 17 communal distribution system operators. In 2007 there were 3 major market players taking 83.7% of the Belgian supply market: Distrigas 45.1%, Electrabel Customer Solutions 28.6% and Gaz de France (10%). In addition Wingas had 6.0% and SPE 6.5% of the Belgian gas consumer market. All the suppliers are obligated to hold licenses issued by the regional authorities.[1]

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