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FSUOGM COMMENTARY FSUOGM
be able to leverage its low costs, ample gas supply and close proximity to potential customers in Europe, China and Japan to secure a slice of this market, it said.
Gazprom has already set out its own ambitions in the hydrogen sector. EU policymakers are cur- rently focused on phasing out the use of coal to meet climate targets, while expanding the use of renewables. However, reducing emissions from gas is inevitably going to move up their priority list in the coming years. is could undermine Gaz- prom’s traditional revenue base unless it is willing and able to adapt to changing conditions.
In a presentation made last year, Gazprom said it was exploring ways to develop emis- sions-free hydrogen from gas and establish a €153bn ($175bn) market for the fuel by 2050. is is larger than the current value of Europe’s gas supply market of $110bn.
There are several methods of producing hydrogen with minimal emissions, includ- ing water electrolysis. But Gazprom wants to research a process known as thermal methane pyrolysis – a reaction that occurs in low-tem- perature plasma placed under high pressure in a small reactor. Trials of the method are already underway.
Gazprom’s plan for expanding the role of hydrogen in its business between now and 2050 involves slowly expanding the share of hydrogen in its export pipelines. It will eventually have to upgrade this infrastructure to avoid damage when the share of hydrogen becomes too great. It also wants to promote hydrogen as a motor fuel by establishing a network of lling stations across the continent.
Toactornottoact
The hydrogen market is still an early phase of development, and while both government and industry appear to be warming towards its greater use, it will have to compete with other technologies aimed at decarbonising economies.
Russia faces a choice. On the one hand, it is well-placed to take a leading role in a poten- tial hydrogen revolution, provided it invests in improved technologies and new produc- tion facilities in time. Should prospects for hydrogen demand disappoint, however, these e orts will have been in vain. On the other hand, its failure to act could see it miss out on a fast-growing market that would ensure its position as Europe’s leading energy supplier for decades to come.
PIPELINES & TRANSPORT
IAP pipe design work set to finish by Sept 2020
BALKANS
The pipeline would supply Azeri gas from the Southern Gas Corridor (SGC).
ALBANIA, Bosnia & Herzegovina, Croatia and Montenegro plan to complete the preliminary design of the Ionian-Adriatic Pipeline (IAP) by September 2020, Indikator.ba reported on Sep- tember 3.
e construction of the pipeline would ena- ble the gasi cation of Albania and Montene- gro, as well as the expansion of the gas sector in southern Croatia and Bosnia, providing a diver- si ed and reliable supply of natural gas.
If built, the pipeline will run from Fier in Albania through Montenegro and Bosnia to Split in Croatia. e IAP would be connected with the planned Trans Adriatic Pipeline (TAP) in Fier. e capacity of IAP pipeline is set at 5bn cubic metres (bcm) per year, of which 1bcm would be for Albania, 0.5bcm for Montenegro, 1bcm for Bosnia and 2.5bcm for Croatia.
Four companies - Montenegro Bonus, Alba- nia’s Albgaz, Bosnia’s BH-Gas and Croatia’s Plin- acro - agreed in August to set up a joint venture for the construction of the pipeline, in which all companies will hold equal stakes.
e TAP pipeline, currently under construc- tion, is a key part of the Southern Gas Corridor, which will carry gas from Azerbaijan’s giant o - shore Shah Deniz II eld via the Caucasus and Southeast Europe to Italy.
Week 35 04•September•2019 w w w . N E W S B A S E . c o m P5
