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Switzerland

Table of Contents
  1. 1. Introduction
  2. 2. Key Statistics
  3. 3. Gas Demand
    1. 3.1. Total Primary Energy Consumption per fuel
    2. 3.2. Gas demand per 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. Gas Market

1. Introduction

Switzerland, or officially called the Swiss Confederation is a federal republic divided in 26 cantons. The country is situated in the central part of Europe and is bordered to the north by Germany, to the east by Austria and Lichtenstein, to the south by Italy and to the west by France. Switzerland has a total surface of 41,285 square kilometers (15,940 sq mi) and is inhabited by approximately 7.9 million people (2010 est.) making it the 95th most populated country in the world. Switzerland is amongst the richest countries in the world ranked by per capita gross domestic product per capita, with a nominal per capita GDP of $75,835 (2010 est.). Two of its main cities, Zürich and Geneva have been ranked as the cities with the second and respectively third highest quality of life in the world after Vienna. In Switzerland, natural gas has been used as an energy source since the mid-1970s.[1] In 2010, Switzerland consumed 3682 mcm of natural gas. Switzerland is 100% dependent on imports for its natural gas volumes. Switzerland has an estimated natural gas supply per capita of 0.388 toe of 2010, amongst the lowest in Europe. Switzerland imports the vast majority of its gas volumes from Germany and the Netherlands.  [2]

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2. Key Statistics

Basic Gas Facts - Switzerland
Basic Gas Facts 2006 2007 2008 2009 2010e
Gas reserves (bcm) - - - - -
Gas production (mcm) - - - - -
Gas consumption (mcm) 3306 3219 3432 3295 3682
Gas imports (mcm) 3305 3218 3429 3291 3676
imports pipeline (mcm) 3305 3218 3429 3291 3676
imports LNG (mcm) - - - - -
import dependency (%)* 99.97% 99.97% 99.91% 99.88% 99.84%
Gas exports (mcm) - - - - -
Natural gas supply per capita (toe) 0.358 0.346 0.364 0.345 0.388
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: IEA Natural Gas Information 2011, Global Methane Initiative, US Energy Information Administration

[1]

Basic Energy Facts - Switzerland
Basic Energy Facts 2006 2007 2008 2009 2010e
Total Energy Consumption (mtoe) 26.98 25.72 26.78 26.95 26.31
CO2 Emissions, energy-related (Mt) .. 42.18 43.7 42.42 ..
CO2 intensity, energy-related (tCO2/toe) .. 1.64 1.64 1.57 ..
Energy consumption per capita (toe/cap) 4.28 4.26 4.36  .. ..
CO2 per capita, energy-related (tCO2/cap) .. 5.62 5.67 5.44 ..
c = confidential; - = nill; ..= not available
Sources: IEA Natural Gas Information 2011 & EIA International Energy Statistics

[1][2]

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3. Gas Demand

This section explores total primary energy consumption and gas demand by sector for Switzerland.

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3.1. Total Primary Energy Consumption per fuel

In 2010, Switzerland’s TPEC amounted to 26.30 mtoe, a 2.4% decrease compared to 2009. Oil accounted for 10.37 mtoe while coal and gas accounted for 0.15 mtoe and 3.01 mtoe respectively. Other sectors accounted for 12.77 mtoe. Nuclear energy amounted to 26.6% of TPES in 2010. At about 10% of primary energy supply, Switzerland has a relatively low gas penetration rate.[1]

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

[1]

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

[1]  

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3.2. Gas demand per sector

In 2010 Switzerland consumed a total of 3,682 mcm of natural gas, an 11.7% increase compared to the previous year. In 2009, Switzerland consumed a total of 3,295 mcm of natural gas, which was 4.2% less than in 2008. In 2009, 251 mcm were used for transformation and 997 for the industry while 2,009 mcm was consumed by other sectors. [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 and gas imports.

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4.1. Gas reserves

Switzerland holds insignificant natural gas reserves. [1]

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4.2. Gas Imports

Imports by country - Switzerland
By country of origin (in mcm) 2006 2007 2008 2009 2010 %Total 2010
France 281 456 344 376 563 15.32%
Germany 2138 2111 2458 2364 2517 68.47%
Italy 103 68 78 79 94 2.56%
Netherlands 783 583 549 472 502 13.66%
Total 3305 3218 3429 3291 3676 100%
%Total Consumption 99.97% 99.97% 99.91% 99.88% 99.84% -
c = confidential; - = nill; ..= not available
Source: Natural gas information 2011 & OECD/IEA, 2011

[1]

Imports by transport type - Switzerland
By transport type (in mcm) 2006 2007 2008 2009 2010 %Total 2010
Pipeline imports 3305 3218 3429 3291 3676 100%
LNG imports - - - - - -
Total 3305 3218 3429 3291 3676 100%
c = confidential; - = nill; ..= not available
Source: Natural gas information 2011 & OECD/IEA, 2011

[1]

In Switzerland, imports of natural gas account for 100% of the total volumes of consumed natural gas. All of Switzerland’s gas imports are being transported via pipeline; no LNG is imported. Most of the gas pipeline imports originate from Germany. The share of Germany in Switzerland’s gas imports was 68.5% in 2010, whereas the share of Dutch and French gas in Switzerland’s imports amounted to approximately 15% in 2010.

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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

Pipeline Switzerland’s gas transmission and distribution network totals about 16,700 km. Most of the grid is low pressure with 11,284 km of <1 bar, 3,164 km of 1-5 bar pipeline and 2,190 km of >5 bar pipeline. The Swiss gas network has eleven cross-border feeding points into the European network.[1] Gas transit over Swiss territory from Germany and France to Italy is being accomplished through Transitgas’ system. The gas transmission system is owned and operated by Transitgas, Swissgas and a number of regional gas companies.  [2]

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5.2. LNG

Switzerland, being a land locked country, has no LNG infrastructure. [1]

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5.3. Storage

 Switzerland does not have any significant gas storages. [1]

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6. Gas Market Regulation

This section deals with the gas market regulation in Switzerland

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6.1. Gas Market

In Switzerland, each region is usually supplied by just one single gas provider, thus gas distribution companies have a natural monopoly position on the market. There exist about 100 distribution companies, of which many are owned by cantons or municipalities.[1]The apparent monopolistic position needs to be regarded from a broader perspective, however. First of all, the Swiss heating market, which is responsible for a high percentage of the total gas consumption, is very competitive. Secondly, the large-scale consumers connected to the Swiss high pressure networks have been able to choose freely their gas suppliers since 1964 when the Swiss Federal Pipelines Act entered into force. Article 13 of this act obligates the operator of a  >5 bar pipeline to accomplish transit operations for third parties under specific conditions. Nevertheless, it took decades before this decision was put into practice. It was only after 1998 when the first EU directive was issued that gas companies developed an interest in transporting gas from Germany to Italy via Switzerland. A joint venture agreement was struck between Transitgas, Swissgas and Eni S.p.A. to govern gas transport for third parties on the basis of Article 13. Ever since 2001, both Swissgas and Eni S.p.A. have been actively satisfying transport mandates of this nature. Furthermore, a number of agreements (based on article 13) have been made between Swissgas and regional suppliers transporting natural gas via high pressure networks that standardize and simplify access to these networks.

Third party access to low pressure networks is also regulated in Switzerland. Basic principles have been formulated by the Swiss Gas Association to govern the calculation of charges on local gas suppliers that are using the low pressure network. The calculator dubbed ‘Nemo’ has been developed to permit third party access in a non-discriminatory way. The network access implies a system of unbundling between network operation (transport, distribution) and all other activities (e.g. gas trading and supply). The calculation system ‘Nemo’ is based on an agreement under private law that still allows local distributors to turn down transport requests from third parties. The option of a similar liberalization to the electricity market in the Swiss gas market based on the Swiss Federal Cartels Act remains to be accomplished. [2]  

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