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Luxembourg

Table of Contents
  1. 1. Introduction
  2. 2. Key Statistics
  3. 3. Gas Demand
    1. 3.1. Total Primary Energy Consumption by fuel
    2. 3.2. Gas demand by sector
  4. 4. Gas Supply
    1. 4.1. Gas reserves
    2. 4.2. Gas imports
  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. Networks
    3. 6.3. Downstream

1. Introduction

Luxembourg is a landlocked country in western Europe, bordered by Belgium, France and Germany. Luxembourg has a population of over half a million people in an area of approximately 2,586 square kilometres. The country has a highly developed economy, with the highest GDP per capita in the world according to the International Monetary Fund (IMF). Luxembourg is a member of the European Union, NATO, OECD, the United Nations and Benelux, reflecting the political consensus in favour of economic, political and military integration. The city of Luxembourg is the seat of several institutions and agencies of the European Union. It is also the largest and capital city of Luxembourg. After Estonia and Slovenia, Luxembourg was the third smallest consumer of natural gas within OECD Europe in 2010. Given a lack of domestic gas reserves, Luxembourg relies on imports to fulfil its demand for natural gas. Luxembourg’s pipeline network is connected to all three neighbouring countries: Belgium, Germany and France. [1], [2]

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2. Key Statistics

Basic Gas Facts - Luxembourg
Basic Gas Facts 2006 2007 2008 2009 2010e
Gas reserves (bcm) .. .. .. .. ..
Gas production (mcm) .. .. .. .. ..
Gas consumption (mcm) 1403 1312 1255 1269 1364
Gas imports (mcm) 1403 1312 1255 1269 1364
imports pipeline 1403 1312 1255 1269 1364
imports LNG (mcm) - - - - -
import dependency (%)* 100% 100% 100% 100% 100%
Gas exports (mcm) - - - - -
Natural gas supply per capita (toe) 2.606 2.392 2.24 2.238 2.364
Technically recoverable shale gas resources (bcm) .. .. .. .. ..
Coal Bed Methane reserves (bcm)** .. .. .. .. ..
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 - Luxembourg
Basic Energy Facts 2006 2007 2008 2009 2010e
Total Energy Consumption (mtoe) 4.31 4.22 4.19 3.95 4.2
CO2 Emissions (Mt) .. 10.73 10.4 9.99 ..
CO2 intensity (tCO2/toe) 2.86 2.54 2.53 2.53 ..
Energy consumption per capita (toe/cap) 10.69 10.44 10.13 .. ..
CO2 per capita (tCO2/cap) .. 22.35 21.27 20.1 ..
c = confidential; - = nill; ..= not available
c = confidential; - = nill; ..= not available
Sources: Natural Gas Information © OECD/IEA, 2011 & EIA International Energy Statistics

[1], [3]

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3. Gas Demand

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

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3.1. Total Primary Energy Consumption by fuel

In 2010, Luxembourg’s total TPEC amounted to 4.20 mtoe, a 6.3% increase compared to 2009. Oil accounted for 2.44 mtoe while coal and gas accounted for 0.08 mtoe and 1.2 mtoe respectively. Other sectors accounted for 0.49 mtoe.  [1]

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

[1]

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

[1]

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3.2. Gas demand by sector

In 2010 Luxembourg consumed a total of 1,364 mcm of natural gas, almost 7,5% more than the previous year. In 2009, Luxembourg consumed a total of 1,269 mcm of natural gas. Of the total gas consumption in 2009, 548 mcm were used for transformation and 277 mcm for the industry while 444 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 (incl. fishing), 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 and gas imports.

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4.1. Gas reserves

Luxembourg has no natural gas reserves and is therefore completely reliant on imports from other countries. [1]

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4.2. Gas imports

Imports by country - Luxembourg
By country of origin (in mcm) 2006 2007 2008 2009 2010e %Total 2010
Belgium - - 141 157 169 12.4%
Netherlands - - 13 15 16 1.2%
Norway - - 587 657 707 51.8%
Algeria - - 43 - - 0.0%
Russia - - 295 305 327 24%
Non-specified - - 176 135 145 10.6%
Total 1403 1312 1255 1269 1364 100%
%Total Consumption - - 100% 100% 100% -
c = confidential; - = nill; ..= not available
Source: Natural Gas Information © OECD/IEA, 2011

[1]

Imports by transport type - Luxembourg
By transport type (in mcm) 2006 2007 2008 2009 2010 %Total 2010
Pipeline imports 1403 1367 1255 1269 1364 100%
LNG imports - - - - - 0%
Total 1403 1367 1255 1269 1364 -
c = confidential; - = nill; ..= not available
Source: Natural Gas Information © OECD/IEA, 2011

[1]

In 2009, gas imports account for 100% of the total volumes of In 2010, gas imports accounted for 100% of the total volumes of consumed gas, all of which were transported by a pipeline as Luxembourg is a landlocked country. Imports mainly originated from Norway, Russia, Belgium and the Netherlands. In total, 1364 mcm of natural gas were imported in 2010, of which 892 mcm were coming from OECD countries, particularly from Norway (707 mcm), however, the second largest gas supplier (327 mcm) was Russia.[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 

Luxembourg’s natural gas pipeline network is not designed for gas transit, it does not have a compressor station and thus depends on the compressors of Belgium and Germany. There is no substantial line pack either. The pipeline infrastructure consists of 380 km of transmission system network and about 2300 km of distribution system network. The distribution system of four distribution companies and some industrial customers is directly connected to the transmission system of SOTEG. [1]

The owner and operator of the high pressure gas transmission system is SOTEG. SOTEG purchased most of its gas under long-term contracts, but also on the spot market on the Zeebrugge hub in Belgium.The state has a 21% share of ownership in SOTEG, 20% is owned by E.ON (Germany), 20% by ArcelorMittal (large buyer), 19% by Cegedel (power company), 10% by Saar-Ferngas (Germany) and 10% by the state-owned SNCI fund (Société Nationale de Crédit et dÍnvestissement, Luxembourg).The pipeline network has three entry points at the border: high pressure entry points at the border of Germany and Belgium and a medium pressure entry point at the French border.[1]  

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5.2. LNG

Luxembourg does not have any LNG infrastructure. [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

There is no production, no storage and no wholesale market for gas in Luxembourg. [1]

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6.2. Networks

The high pressure network serves a few large industrial companies, a power plant and four distribution companies, mostly owned by municipalities. TPA is mandatory for all of these networks. There is one regulatory authority for gas, electricity and telecommunication. [1]

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6.3. Downstream

The four distribution companies are bundled and provide, next to network services, the supply of gas. Additionally, two licenses have been awarded to new suppliers who entered the market. A third license application is currently under investigation (July 2007). Since 1st July 2007, all customers are free to choose a supplier. [1]

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