Natural gas can play a role in the EU’s energy transition, the bloc's Energy Union chief told an industry conference that also heard the sector could secure a longer-term future in Europe by moving to so-called ‘green gas’ alternatives.

“As we work towards security of supply for our member states, we are looking at diversifying our sources, and are looking for new partners,” Maros Sefcovic, vice president of the Energy Union for the European Commission told the World Gas Conference.

The capacity of importing liquefied natural gas (LNG) into Europe will be around 200 billion cubic metres once a terminal in Croatia is built, Sefcovic said during the conference.

However, he added, Europe is focused on clean energy, and while gas is expected to be a part of the region’s transition, it would not necessarily be for the long term.

“I see gas as a very important transitional fuel in our transformation process in Europe, as we try to accommodate more and more renewables,” Sefcovic said.

“Gas, for sure, would be part of our energy transition, it would serve as a very important back up fuel for intermittent renewables. So we want to establish solid relationships between Europe, as an energy importer, and all those who can supply gas at affordable prices, high quality and without any political string attached.”

The EU is increasingly pushing for larger shares of renewables in its energy mix – it recently adopted a target of 32% by 2030 – and increased its target to reduce CO2 emission compared to 1990 levels by 40% by 2030, and by 80% by 2050.

According to Annie Krist, the chief executive of GasTerra, a natural gas trader owned by oil and gas companies Shell and ExxonMobil, in partnership with the Dutch government: “Europe has already decided that its future is low, if not, zero carbon.”

Krist said that, since most European governments agree that beyond 2030 there will be “no or hardly any role for fossil fuels, including natural gas”, the global industry should adopt a new approach.

She said that the way forward for the players eyeing the European market should be by “replacing declining natural gas as a source of energy with renewable gases, like biogas, blue hydrogen and green hydrogen”.

Krist’s view was shared by Klaus Schafer, the chief executive of German utility Uniper.

“The transition of the energy system that Europe has decided on is one of the biggest transformation projects that the world has seen but this decarbonisation phase poses some challenges,” Schafer said.

“I believe the gas industry can contribute to this transitional process, even as a destination fuel, but some changes are needed. Renewables will be growing massively, but will need a partner. Gas needs to become decarbonised if it wants to be part of Europe’s future,” Schafer said.

Marco Alvera, the chief executive of GasNaturally, an initiative aimed at showcasing the role of gas in the forthcoming energy transformation in Europe, warned that “a more balanced approached” is required to create a sustainable and competitive market.

“We all know (Europe) is the best partner for renewables, however, I think we forget how fast gas itself is becoming a renewable source. We need to push the concept that gas is not a transitional fuel but a steady clean one,” Alvera said.

According to Alvera, a GasNaturally study revealed that by integrating renewable gases and renewable electricity, the EU can save €140bn ($162bn) a year.

Transition

‘Gas needs green strategies to have long term role in EU’