BAKU, Azerbaijan, Aug.25
By Leman Zeynalova – Trend:
In Europe, LNG and pipeline gas complement each other, both aiming at developing more liquid gas markets and improving security of supply for the benefit of consumers, Eurogas told Trend answering a questions about possible rivalry between LNG and pipeline gas.
“LNG has an important role to play in providing energy storage at scale and facilitating the growing shares of biomethane. It also contributes to better air quality in ports and on roads,” Eurogas said.
“Existing gas networks and LNG infrastructure in Europe are both fundamental to the long-term decarbonisation target, as it will help to facilitate higher volumes of decarbonised and renewable gases.”
“Even before the COVID-19 pandemic, the global LNG industry was managing supply side issues. While robust LNG market growth is still forecasted in the medium to long-term, reports indicate that demand for LNG could slow down this year due to the contraction of economic activity.”
Gas Exporting Countries Forum (GECF) believes that EU has the potential to increase liquefied natural gas imports in the short term.
An increase in global LNG liquefaction capacity by 24 mtpa to 444 mtpa and growth in global LNG trade by 37 mtpa to 352 mtpa in 2019 laid the foundation for global LNG oversupply and incremental LNG supply to the EU as the market of last resort.
The EU possesses large LNG infrastructure, including 23 large-scale LNG regasification terminals with total sendout capacity of 209 bcm, with Spain (61 bcm), the UK (49 bcm), France (35 bcm), and Italy (15 bcm) representing 77 percent of the regional capacity.
Huge underutilisation of regasification capacity in the EU, with utilisation rate reaching only 49 percent in 2019 and 55 percent in the first half of 2020, implies that there is a potential to increase LNG imports in the short term.
---
Follow the author on Twitter: @Lyaman_Zeyn
