OBG talks to Jean-Marie Dauger, Executive Vice-President, Global Gas & LNG Business Line, GDF Suez

Interview: Jean-Marie Dauger

How important will the role of natural gas be within the world energy mix?

JEAN-MARIE DAUGER: According to the International Energy Agency, the world demand for energy will increase by 40% between 2009 and 2035. About 90% of this new demand is expected to come from non-Organisation for Economic Cooperation and Development countries due to their demographic vitality and their drive to catch up in per capita energy consumption. This increase will also have to integrate growing concerns about sustainable development. Natural gas accounts for 21% of the world energy mix, but its ability to contribute to sustainable development is very important today. New high-growth countries, Europe and the US can count on large world gas reserves that are estimated to last 250 years at current rates of consumption, taking into account unconventional resources. A low-carbon fossil fuel, natural gas offers a middle ground between the need to stay competitive and the fight against climate change. It is also a good complement to the use of renewable energies.

To what extent could public-private partnerships (PPPs) be an alternative to state projects?

DAUGER: PPPs have numerous advantages that ensure long-lasting, sustainable and quality services for the consumer. Under such contracts the public authority remains a guarantor of the general interest and preserves its strategic orientation while benefitting from the know-how, innovation and financing capacities of a private operator. Private players can also gain from the technological innovations that result from such contracts, as well as offer high standards, adaptability in responding to possible crises and good management of public holdings. This performance can be measured and quantified by certain key indicators.

Furthermore, private operators have a real role to play as the world faces new environmental challenges: to assists their clients in becoming leaders in environmentally friendly performance and efficiency.

To ensure the success of PPPs and for the benefit of the customer, it is necessary to create a win-win situation for both public and private operators.

What are the challenges faced by developing countries in terms of water management?

DAUGER: Population growth coupled with changes in lifestyle and economic expansion in developing countries has heightened pressure on water resources, and existing environmental concerns add to these pressures. Since it is a resource that is essential for life, the supply, improved quality and sound management of water are key elements in achieving sustainable development. The challenges are simultaneously technical and contractual. On a technical level, it is not enough to only efficiently manage water distribution; supply must also be maintained. The difficulty lies in reducing demand while increasing output through several initiatives. The constant improvement of water distribution systems’ yield efficiency through the reduction of losses is a key objective. Such an approach fits in with global perspectives on protection of water resources by means of solutions such as recycling wastewater for irrigational or industrial use, desalination and the implementation of water conservation technologies such as automatic meter reading and smart grids.

On a contractual level, the main challenge is convincing both the public authority and private operator that long-term quality performance is in their best interests. This means going beyond conventional strategies and reconsidering possible lines of division between partners involved in the management of water resources. This dual technical-contractual challenge has been successfully tackled within the framework set up between Suez Environment and the Société des Eaux et de l'Assainissement d'Alger. In five years, the percentage of Algiers’s population that has continuous access to water has increased from 8% to 100%.