According to a survey released today by SunGardâs Energy Solutions business unit and Utilipoint, uncertainty about reliable sources for gas, barriers to cross-border trading of gas, and the ability of IT systems to deal with the increasing complexities of the gas industry are amongst the key concerns of European gas market participants. Over half of the respondents to the survey (53 per cent) felt that Russia and the Caspian region represented the most dependable supply source, with only thirteen per cent feeling Europe should look to the Middle East for a consistent gas supply between now and 2012.
SunGard's solutions for energy organizations include ZaiNet and Entegrate, which help organizations to monitor, measure, and manage operational and market risks. They aggregate information to help deal with the complexities brought about by energy market liberalization and the geopolitics of supply.
The survey, which sought the views of more than 100 key energy market stakeholders including energy companies, banks and analysts also revealed that nearly half (49 per cent) of those organisations questioned felt that their current IT systems were inadequate to deal with the complexities in the European gas trading market. Launched ahead of the 2007 FLAME energy conference being held in Amsterdam, the survey offers valuable insights into the European energy industry.
Doubts surrounding supply source and security, along with the impact of market regulation, suggest that the next five years will be an uncertain period for the European energy industry, particularly in the gas sector.
Other key findings included:
Nearly half (49 per cent) of respondents felt that the European Commission will have the most impact in the success of cross border gas trading.
82 per cent of respondents felt that incumbents controlling existing capacity was the greatest hindrance to cross border European gas trading.
Nearly three quarters (75 per cent) felt that Liquid Nitrogen Gas (LNG) would provide a significant new source of gas supply to Europe within the next five years.
Commenting on the report, Matt Mandalinci, president of SunGardâs Energy Solutions business unit, said, âThe survey results highlight the criticality of integrated IT solutions to cope with the changes ahead in the gas industry. With solutions for energy trading, risk management, operations and back-office systems, SunGard offers a suite of applications designed to help handle cross-border transactions for multiple commodities in multiple currencies. Our focus is on delivering a customer-proven integration platform that builds on the strength of industry standard technology and on our experience delivering solutions that help energy companies streamline their business.â