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Continental Market Seen from the UK

机译：从英国看大陆市场

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In this presentation, the Chairman of a French gas company (Elf) comments on the evolution of the Continental gas market from a British point of view. He first discusses the differences between the US, British and Continental gas markets, recalls the provisions of the European Gas Directive and states why a fully competitive system is a long-term prospect in Continental Europe. Seen from the UK, the provisions of the EU directive may appear modest. Due to the long transportation, British gas companies may find it hard to compete on the gas market of Continental Europe. When Inter connector, the gas pipeline connecting the gas markets in UK and the Continent, begins operation, there will be a flow of gas from the UK to the Continent according to already signed contracts. But there may be contractual flows both ways. Gas prices will level off between the UK and Northern Europe, at least for the industry. The continental markets will change gradually, the Gas Directive and the Inter connector will help the move towards a more competitive gas industry, but the fundamentals will not change: low gas prices for the next few years, competition between the big three exporters to Continental Europe, and long- term contracts that will extend beyond 2005.

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