Page 20 - European Energy Innovation - Spring 2016 publication

20 Spring 2016 European Energy Innovation

LNG

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
(LNG).

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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