This article assesses the impact of Gas Directive 98/30/EC on the eve of the enaction of the new Gas Directive 2003/55/EC. Dr. Hernández and Mr. Parada consider the benefits and drawbacks of both the new and old directives and conclude that the old directive made important contributions to the liberalization of national gas markets. However, the authors note that the old directive failed to promote an integrated and competitive European gas market. The authors also outline the main obstacles to integration and competition, which constitute a challenge for the new directive due to the remaining high degree of market concentration in gas production and import, the existence of significant differences in transport tariff methodologies, and the general inadequacy of capacity booking systems.

This article was published in Gas Actual, No. 88, January 2004.