European countries are so fanatically looking for a solution to replace Russian gas that there may soon be a surplus of liquefied gas (LNG). Energy and climate experts warn of this in the Financieele Dagblad.
“If you add up all the LNG terminal construction plans of the various European member states, in the long term (around 2026) there will be much more gas available than needed,” explains FD energy and climate editor Orla McDonald. “It exceeds the amount of gas we have received from Russia.”
Gasoline price
If more gas is offered on the market, that also means that the price will go down. ‘So you could say this is a positive development, because we all want a lower price for gas. But the EU has also agreed to phase out the use of fossil fuels, which includes reducing gas consumption in order to meet climate goals.’
McDonald mentions two risks associated with such a gas surplus. “Gas companies invest in the construction of terminals that can pay for themselves in a few years. It often happens that the governments of the Member States guarantee these investments.’ Furthermore, if gas is offered cheaply, the financial incentive to become more sustainable disappears. “And global warming is hurting the economy too.”
Collaborate
According to Gasunie, the state-owned company investing in Dutch regasification terminals, it is important that member states consult each other better. ‘Gasunie now says he has to keep an eye on what his competitor is doing in another Member State. This should actually be regulated at EU level.” McDonald says Gasunie has faith in her own plans. “The company says it has a solid business case.”
Source: BNR
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