International Gas Union

Natural Gas – the bridging fuel towards a low carbon society

Erik Gonder

Advisor, IGU Secretariat

Oslo, Norway

7th Russian Petroleum & Gas Congress/RPGC 2009

25 June 2009, Moscow, Russia

20/04/23

Agenda

The International Gas Union

The Challenges

Natural Gas in a low carbon perspective

Conclusions

IGU serves as a spokesman for the gas industry world wide

World wide non–profit organisation since 1931

World Gas Conference every third year

Promotes technical and economic progress of the gas industry

Geopolitics and strategy higher on the agenda

IGU represents around 95% of global gas sales

President

CC Secretary

CC Vice Chairman

Roberto BrandtArgentina

Ernesto Lopez AnadónArgentina

Andres Kidd Argentina

CC Chairman

Secretary GeneralTorstein Indrebø Norway

Vice President Datuk Rahim HashimMalaysia

Ho Sook WahMalaysia

WOC 2 Storage

VladimirOnderka

Czech Rep.

WOC 3Transmission

HelgeWolf

Germany

TFR&D

PGC CDeveloping

Markets

Mohd. FaridAmin

Malaysia

PGC BStrategy,

Economics& Regulation

Pedro MoraledaSpain

PGC DLNG

SeiichiUchinoJapan

WOC 4Distribution

JeremyBending

UK

PGC ASustainable

Development

WOC 1 Exploration &

Production

VladimirYakushev

Russia

WOC 5Utilisation

JeanSchweitzer Denmark

MarcFloretteFrance

TFGas MarketIntegration

JorgeDoumanianArgentina

The organisational structure of IGU

Juan PuertasSpain

Visit us in Oslo!

Secretariat of the International Gas

Union c/o StatoilHydro www.igu.org

7

The Climate Challenge

0

5

10

15

20

25

30

35

40

45

1990 2006 2015 2020 2025 2030

Energy related CO2-emisison in the Reference Scenario (Gt)

Source : IEA WEO 2008 – Reference Scenario

The European Union climate and energy package

20% reduction in greenhouse gas (GHG) emissions by 2020

20% of energy consumption from renewables

20% increase in energy effiency

30% reduction in GHG emissions if global agreement in place

Climate concerns will impact energy demand

9

The Energy Challenge

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

1990 2006 2020 2030

Other Renew.

Biomass

Hydro

Nuclear

Natural Gas

Olje

Coal

Demand for primary energiy(Mtoe)

14% Renewable

2.0% p.a. 2006-2030

1.0% p.a. 2006-2030

1.8% p.a. 2006-2030

Source : IEA WEO 2008 – Reference Scenario

20/04/23

Agenda

The International Gas Union

The Challenges

Natural Gas in a low carbon perspective

Conclusions

Plus factors of Natural Gas

Low carbon dioxide releases

Efficient with combined heat and power systems

Use in transportation sector benefits city air quality

Natural gas complements wind and solar energy

Gas – part of the solution in asustainable world of energy

Source: With courtesy of E.ON Ruhrgas

Location of world proven gas reserves (180 trillion m³)

8

South and Central America

8

Europe

Africa

15

Middle East

73

Russia

Asia Pacific Region

15

North America 653

in 1000 bcm

Source: BP Statistical Review 2008

A global gas trade is evolving

IGU Strategic Statement 2008

Message of 2008 Strategic Statement is

Gas Market Integration: A cornerstone for sustainable development

The environmental benefits of Natural Gas

The need for a shared understanding across nations and regions

The role of governments

Natural gas – lowest carbon content

Carbon Capture and Storage (CCS)

Source:

17

The contribution of Natural Gas in the Climate policy

Power production and direct use

In the transport sector

Cooperation with renewable,periodical power production

18

Flexible gas fired power in combination with renewable sources

IGU on the Climate scene

• Active participation by IGU in Copenhagen

• Stand and Side Events

• Topics:Sustainability and Carbon

Capture and Storage (CCS) • Strategic Statement on

Sustainability

20/04/23

Agenda

The International Gas Union

The Challenges

Natural Gas in a low carbon perspective

Conclusions

20/04/23

Conclusions

Natural Gas is already contributing to a reduction in greenhouse gas emissions.Further replacement of coal and oil should be targeted.

Natural Gas has a huge saving potential in the transport sector.

Gas fired power production is vital to secure implementation of reneawable power production.

Climate mitigation

And in order to preserve the polar bear and the penguins, we also need to preserve the ice…

20/04/23

Thank you for your attention!

See you in Buenos Aires!

24rd World Gas Conference and ExhibitionOctober 5 – 9 2009