20101231-IEA-Oil_and_Gas_Emergency_Policy_Luxembourg_2010_update_15页_1014kb

Luxembourg Energy Overview Summary

Core Content

Luxembourg is a country with no domestic oil or gas production, relying entirely on imports for its energy needs. Oil and gas together account for over 95% of the total primary energy supply (TPES), with the transport sector being the largest consumer of oil (88%) and natural gas being the primary source for electricity generation (over 90%). The country also utilizes a small percentage of renewable energy, mainly biofuels and some hydro and wind power, contributing around 3% to TPES in 2008.

Key Oil Data

• Oil Consumption (kb/d):

  • 2008: 59.2 kb/d
  • 2005: 64 kb/d
  • 2000: 47.6 kb/d
  • 1995: 37.0 kb/d
  • 1990: 33.1 kb/d
  • 1985: 22.0 kb/d

• Oil Demand by Product (kb/d):

  • Diesel: 37.1 kb/d (up 84%)
  • Gasoline: 9.7 kb/d (down 27.8%)
  • Kerosene: 7.3 kb/d (up 8.2%)
  • LPG and Ethane: 0.3 kb/d (down 55.5%)
  • Heating/other Gasoil: 4.5 kb/d (down 27.3%)
  • Residual Fuels: 0.0 kb/d (down 65%)
  • Other Products: 0.3 kb/d (up 16.4%)

• Net Imports (kb/d):

  • 2008: 59.2 kb/d
  • 2005: 64 kb/d
  • 2000: 47.6 kb/d
  • 1995: 37.0 kb/d
  • 1990: 33.1 kb/d
  • 1985: 22.0 kb/d

• Import Dependency:

  • 100% for all years from 1985 to 2009

• Oil Storage Capacity (m³):

  • Total: 196,185 m³ (1.23 million barrels)
  • Bertrange: 93,133 m³ (586 kbbl)
  • Dippach: 12,400 m³ (78 kbbl)
  • Hollerich: 17,252 m³ (109 kbbl)
  • Leudelange: 5,600 m³ (35 kbbl)
  • Mertert: 57,800 m³ (364 kbbl)

• Storage Cover (Days):

  • Distillates: 19 days (2008) → 8 days (if Bertrange and Hollerich permits expire)
  • Gasoline: 41 days (2008) → 14 days

Key Natural Gas Data

• Natural Gas Consumption (mcm/y):

  • 2008: 1,268 mcm
  • 2005: 1,367 mcm
  • 2000: 755 mcm
  • 1995: 636 mcm
  • 1990: 492 mcm

• Demand by Sector (mcm/y):

  • Transformation: 45%
  • Industry: 35%
  • Residential: 20%

• Net Imports (mcm/y):

  • 2008: 1,268 mcm
  • 2005: 1,367 mcm
  • 2000: 755 mcm
  • 1995: 636 mcm
  • 1990: 492 mcm

• Import Dependency:

  • 100% for all years from 1985 to 2009

• Natural Gas in TPES:

  • 1985: 11.0%
  • 1990: 14.0%
  • 1995: 20.5%
  • 2000: 23.7%
  • 2005: 29.4%
  • 2007: 31.0%
  • 2008: 29.2%

Oil Supply and Infrastructure

• Refining:

  • No domestic refineries. All oil is imported as refined products.

• Pipeline:

  • Only one pipeline (CEPS) supplies aviation kerosene to Findel airport.
  • Length: 36 km
  • Capacity: 15 kb/d
  • Average flow: ~9.4 kb/d

• Storage:

  • Total capacity: 196,185 m³ (1.23 million barrels)
  • Key storage sites: Bertrange, Dippach, Hollerich, Leudelange, Mertert
  • Storage permits for Bertrange and Hollerich are set to expire in 2012/2013, leading to a significant reduction in storage capacity.

Oil Emergency Policy

• Emergency Authority:

  • The Ministry of Economic Affairs and Foreign Trade is responsible for emergency response.
  • The Directorate for Energy implements emergency measures and supervises gas supply security.

• Stockholding Obligations:

  • All importers must maintain at least 90 days of oil supply in stock.
  • Over 85% of these stocks are held in neighboring countries (Belgium, France, Germany, Netherlands) under bilateral agreements.
  • Stocks are mainly in the form of short-term ticket agreements.

• Stock Drawdown:

  • The Minister can authorise the drawdown of stocks in an emergency.
  • The process can take 2-3 days and is managed by an Emergency Committee.
  • Physical delivery to market takes one week.
  • Weekly market statistics are used to monitor compliance, with customs officers able to verify physical drawdown.

• Pricing Mechanism:

  • A maximum price mechanism is in place for oil products.
  • The pricing formula includes transport, distribution, and compulsory storage costs.
  • The government can adjust the maximum price based on Antwerp prices, with a four-day delay.

Natural Gas Emergency Policy

• Supply Security:

  • The Ministry of Economic Affairs and Foreign Trade monitors the security of gas supply.
  • Suppliers must ensure supply to end-users during disruptions and extreme weather.
  • System operators must invest in grid security and safety.

• Public Service Obligations:

  • Suppliers must contribute to the overall supply during disruptions.
  • They are required to participate in solidarity with other suppliers to maintain a steady supply to network operators.

• Network Development:

  • System operators must develop a five-year network development plan and update it every two years.
  • Interruptible contracts with 18% of gas users (35% of industrial, 15% of public distribution) help mitigate supply disruptions.

• Gas Supply Infrastructure:

  • No natural gas storage within the country.
  • Transmission network: 380 km
  • Distribution network: ~2,300 km
  • Four entry points:
    • Germany (Remich): 4.6 mcm/d
    • Belgium (Petange): 3.8 mcm/d
    • Belgium (Bras): 1.4 mcm/d
    • France (Audun): 0.5 mcm/d

• Gas Supply Vulnerabilities:

  • Over 50% of gas comes from Germany, making it difficult to compensate for reduced flows from this entry point.
  • No demand restraint or fuel switching programs in place for natural gas.

Summary of Emergency Measures

Oil

• Stocks:

  • Main response to supply disruptions.
  • Importers must hold 90 days of supply in stock.
  • Over 85% of stock is held in neighboring countries.
  • Limited domestic storage capacity.

• Demand Restraint:

  • Can be applied to the general population or specific sectors.
  • Measures include speed limits, driving bans, and restricted filling station hours.

• Fuel Switching:

  • Not applicable for short-term emergencies.
  • Some switching to natural gas for electricity generation has occurred.

Natural Gas

• Stocks:

  • No storage capacity within the country.
  • Relies on neighboring countries for emergency stocks.

• Emergency Policy:

  • No demand restraint or fuel switching programs in place.
  • Focus is on maintaining grid reliability and securing supply through contractual obligations and network development.

Key Challenges

• Oil Supply Vulnerability:

  • Limited domestic storage capacity and reliance on neighboring countries for emergency stocks.
  • Risk of supply chain disruptions due to weather or labor issues.

• Natural Gas Supply Vulnerability:

  • No storage or line pack in the transmission grid.
  • High dependence on German entry point.
  • No domestic production or refining capacity.

Conclusion

Luxembourg's energy strategy is heavily dependent on imports for both oil and natural gas, with no domestic refining or storage capacity. Emergency response mechanisms for oil are more developed, including a stockholding regime and a price-setting mechanism, while natural gas relies on contractual obligations and grid reliability. The country faces significant challenges in maintaining supply security, particularly in the event of major disruptions, and is actively reviewing its oil stockholding policies to address these vulnerabilities.