NEWS
Reports from the Regional Coordinators In this issue we bring you reports from IGU’s Regional Coordinators for Europe, and for Latin America and the Caribbean. New era for gas
trends and, looking more into the
in the European
future, achieving technical innovations
role in providing flexible gas in many
market
to meet decarbonisation targets
European markets. Coupled with
By Andrea Stegher
defined at the political level.
ample underground storage capacities,
Europe is the world’s
LNG is already playing a greater
In terms of the demand-supply
which are a crucial element of the
largest importer of
balance, Europe will need – whatever
European system, LNG is becoming
natural gas with net
the demand scenario – to cope with
a powerful lever to enhance gas
imports of piped gas and LNG amount
progressively declining domestic
competitiveness.
ing to 304 bcm in 2017. Gas demand in
production and therefore to rely more
The European market is also building
the region has recovered in recent years
on imports, both from existing sources
on its maturity to preserve gas demand
after the economic downturn and due
and new ones. This will require invest
in the traditional heating and cooling,
to the progressive coal-to-gas switch
ments to allow new flows to serve the
industrial and power generation sectors.
in electricity generation. Demand was
market and to better interconnect
Especially in power, gas is the swing
532 bcm in 2017 compared to the
national markets. Gas will need to flow
energy source between fast-growing
recent low of 459 bcm in 2014.
in a more flexible and fluid way,
renewables and “cheap” coal. But gas is
improving the intrinsic features of the
also moving fast to gain new market
mature one and is facing the need to
gas market in terms of reliability and
share in the transportation sector,
continue transforming itself to deal
security, both in volumes and peaks,
where the use of LNG and CNG can be
with progressive challenges, deriving
to guarantee energy to all consumers
instrumental in improving air quality by
from the evolution of supply-demand
under all circumstances.
achieving a significant and immediate
The European gas market is also a
result in terms of emissions reduction c The 2020 global sulphur limit for marine fuel oil will pave the way to a much bigger role for LNG in bunkering. Shell’s Cardissa supplies LNG as marine fuel from the Gate Terminal in Rotterdam to ports across north west Europe.
(-40% CO2) and especially particulate matter (-90%). Moreover, the incoming global sulphur limit for marine fuel oil set by the International Maritime Organisation will pave the way to a much bigger role for LNG in bunkering. Gas in a decarbonising economy But trends, figures and projects must be looked at in a different light considering that Europe is strongly
106 Reports from the Regional Coordinators
