Future of EU Gas Demand
[from E3G, by Euan Graham, Kamila Godzinska]
The EU is implementing an ambitious package of measures to reduce its reliance on Russian gas, targeting both supply and demand. REPowerEU will accelerate the EU’s move away from reliance on gas imports over the next decade.
When it comes to U.S. gas exports, while this will lead to an increased reliance on liquefied natural gas (LNG) in the short term, the outlined strategy doesn’t imply any long-term LNG market growth. The U.S. can supply Europe with sufficient LNG without building new infrastructure. New findings show that, with clean technologies and energy efficiency, EU gas demand will decline before newly proposed projects are actually completed — 15-20 years — and long payback periods mean LNG export projects may never recover the capital investment.
Read the full briefing [archived PDF] on the future of EU gas demand.