Page 13 - GLNG Week 14 2022

GLNG EUROPE GLNG

Report: Europe’s current gas infrastructure

is enough to replace Russian supplies

PERFORMANCE WESTERN Europe already has enough gas import capacity but tightness of global markets.
import capacity to replace Russian supplies, Reducing demand, increasing efficiency and
according to a new report. It warned that prom- deploying renewables is a sounder strategy than
ises of new infrastructure in response to Russia’s a long-term bet on new gas projects,” said GEM
invasion of Ukraine could put the EU’s net-zero research analyst Greig Aitken.
ambitions in danger and leave the continent with GEM’s Gas Tracker highlighted that since
unusable, unnecessary gas terminals. the start of the war Estonia, France, Ger-
The EU had by the end of February drawn many, Greece, Italy and the Netherlands had
up initial plans to expand gas import capac- announced plans to develop floating storage
ity by 24.9% to 160.2bn cubic metres per year. and regasification units (FSRUs), and Italy had
The estimated cost of this expansion is €26.4bn revived two previously shelved LNG terminals.
($28.7bn) – €14.1bn ($15.3bn) for new gas However, even before the war, Europe had a
import pipelines, and €12.3bn ($13.4bn) for new number of gas expansion plans in the pipeline,
LNG import terminals – Global Energy Monitor which meant that new proposals would prove to Since Russia’s
said in its latest Gas Tracker Report. be white elephants.
Since Russia’s invasion of Ukraine, 15 addi- GEM said that 16 gas pipelines were under invasion of
tional gas import and transmission projects construction, with a total length of 3,200 km, at
have come back from the dead or been newly a cost of €6.5bn ($7.1bn). Of this, €2bn ($2.2bn) Ukraine, 15
proposed. GEM said that this represented a rush is allocated to the 613-km Baltic Pipe Project,
to LNG and would add at least a further 70 bcm which is set to increase gas import capacity into additional gas
of annual import capacity. the EU by 10 bcm per year from January 1, 2023. import and
However, research from GEM shows that There are 62 proposed gas pipeline projects in
Europe’s import capacity could in theory be the pre-construction phase would stretch 12,500 transmission
enough to replace the 247 bcm per year currently km and cost an additional €29.7bn ($32.3bn).
imported from Russia. Of this, €12.1bn ($13.2bn) would go toward projects have
The report argued that a wave of gas expan- building 3,600 km of import pipelines and one
sion would be incompatible with the EU’s cli- capacity expansion (the Trans Adriatic Pipeline), come back from
mate goals, which require gas usage to steeply raising gas import capacity into the EU by at least the dead or been
decline by 2030. It would also put Europe at risk 69.5 bcm per year.
of failing to meet the International Energy Agen- There are four LNG import terminals/ter- newly proposed.
cy’s (IEA) 2050 target of net zero. And it would minal expansions under construction in the
put Europe at odds with new warnings from the EU with known capacity of 4.3 bcm per year
Intergovernmental Panel on Climate Change and costing €987mn ($1.1bn). Another 26 pro-
about the role that methane emissions are play- posed LNG import terminals or terminal expan-
ing in the climate crisis. sions would add 102.7 bcm per year at a cost of
“Europe’s problem is not a shortage of gas €11.3bn ($12.3bn).™

Week 14 08•April•2022 www. NEWSBASE .com P13