Page 20 - European Energy Innovation - Spring 2016 publication
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20  Spring 2016 European Energy Innovation


Global LNG Markets:
An opportunity we must not miss

By Seán Kelly MEP (pictured)

                With increased gas
                                                                                                                                           production in the
                                                                                                                                           US and Australia
                                                                                                                                           and growing import
                                                                                                                     requirements in the EU and Asia,
                                                                                                                     global gas markets are rapidly
                                                                                                                     developing and an increasingly
                                                                                                                     liquid market is emerging. With
                                                                                                                     Europe now heavily reliant on a small
                                                                                                                     number of suppliers, diversification
                                                                                                                     of gas supplies is the key to creating
                                                                                                                     a competitive market. As trade in
                                                                                                                     Liquefied Natural Gas (LNG) increases
                                                                                                                     globally – up 45% by 2020 – we are
                                                                                                                     presented with a great opportunity
                                                                                                                     that we really should not miss.

                                                                                                                     In February of last year, the European
                                                                                                                     Commission began moves towards
                                                                                                                     an Energy Union – arguably a direct
                                                                                                                     response to heightened tensions
                                                                                                                     with Russia and its perceived lack of
                                                                                                                     reliability to supply gas to Europe.
                                                                                                                     The goal was to provide secure,
                                                                                                                     sustainable, competitive and
                                                                                                                     affordable energy to EU citizens. A key
                                                                                                                     focus was on the need to diversify gas
                                                                                                                     supply and reduce dependence on a
                                                                                                                     single external supplier. Most recently
                                                                                                                     we have seen the EU's Security of
                                                                                                                     Gas Supply Package, which includes
                                                                                                                     a strategy on Liquefied Natural Gas

                                                                                                                     The benefits to Europe of pursuing
                                                                                                                     this strategy are clear. First of all, gas
                                                                                                                     is a perfect backup to for renewables
                                                                                                                     and helps to increase deployment.
                                                                                                                     Additionally, an advantage of LNG
                                                                                                                     that may sometimes go unmentioned
                                                                                                                     is that it is a viable option for the
                                                                                                                     maritime sector to reduce emissions
                                                                                                                     – vital given the pressure put on the
                                                                                                                     sector at the recent COP21, and also
                                                                                                                     as the IMO tightens environmental

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