IHS Energy Announces a Multi-Client European Gas Study

EPSOM, U.K. (12 July 2004) – IHS Energy, the global source of oil and gas information, analytical software and consulting services, has announced a new European Gas Study that will consider opportunities in a wider Europe for gas operators, investors and service companies. The project announcement comes after the first of two EU laws came into effect on 1st July 2004 that will pave the way for a more liberalized European gas market.

The Gas Study will be conducted by IHS Energy's Consulting Division, working in partnership with specialist advisors, Mascate Limited, and will use methodology proven in IHS Energy's successful North American Gas Model. The Division also has gas consulting experience in China, Angola and Russia.

Mark Stearnes, director of Gas Consulting, IHS Energy, said: "There can be no doubt that the new wider Europe — with its increasingly favorable legislation — will present exciting market opportunities. However, in the short term, there will be many complexities to understand as member countries and infrastructures gear-up. Understanding these through a comprehensive study, will provide structured information to support appropriate expansion and investment," he said.

The study will focus on opportunities being created by a 'two-speed' market within Europe and differentials between 'old-style' gas contracts, tax regimes and infrastructure compared to increasingly favorable market conditions being made possible under the EU's auspices.

IHS Energy stresses that Europe is already a dynamic market with demand at 400 BCM/year*, but that recent European expansion and good projected growth rates, up to 3.1%* in Italy and Iberia, are creating vastly increased opportunities.

Currently five countries — Denmark, Hungary, Lithuania, The Netherlands and Slovenia, have informed the European Commission that they have either transposed the EU laws into national regulations or were in the process of doing so.

Using scenario modeling against a proven methodology, IHS Energy's study will produce information to support decision-making to include gas balances, both overall and emerging; supporting data to include key supply sources and market demands; price trends for a range of scenarios; scope for market-price volatility; status of key market players and options for innovations in commercial relationships, partnerships and contract terms.

Please contact us for further information on the study at +44 (0) 1372 745959.