However, he added, the priority should now be replacing gas with renewables: “We don’t want really this business. Our business is to have clean energy here in Spain and also in Europe.”
Industry representatives caution against leaving fossil fuels behind too quickly. They insist that even under the EU’s gas reduction plans, there is still a need to secure extra LNG supplies, particularly given the pressure to divest from Moscow’s exports.
Narek Terzian, a spokesperson for the International Association of Oil and Gas Producers, pointed to a “gap between projected demand” under the EU’s current forecasts “and the actual supply that we know of, if you take out Russia.”
“That’s the supply gap to be bridged,” Terzian argued. “And so it is extremely important that Europe be able to secure the necessary volumes from the U.S.”
The numbers paint a mixed picture. European gas demand hit a record low for the decade last year, according to the Institute for Energy Economics and Financial Analysis. But the drop was driven mainly by three countries: Germany, Italy and the United Kingdom. Overall, Europe’s LNG demand won’t peak until 2025, the institute concluded.
Meanwhile, the gas industry argues that extra LNG investments don’t limit Europe to U.S. supplies. It could also get LNG from producers like Norway and Qatar, said Brabo, the Gas Infrastructure Europe chief. Down the line, the ports could even be repurposed for less carbon-intensive fuels, he added.
Barbara Terrio is a seasoned business journalist, delving into the world of finance, startups, and entrepreneurship. With a knack for demystifying complex economic trends, she helps readers navigate the business landscape. Outside of her reporting, Barbara is an advocate for financial literacy and enjoys mentoring aspiring entrepreneurs.
