European Parliament recommendations on the EU’s strategy for liquefied natural gas (LNG) and gas storage, drafted by Andras Gyurk (EPP, Hungary) and adopted in plenary session in Strasbourg on Tuesday 25 October, call for better use to be made of existing LNG and gas storage capacity, increased regional cooperation in building new facilities, greater support for the least well connected regions, for an infrastructure hub to be developed in the Mediterranean and gas partnerships with Central Asia, North Africa and the Americas.
In its resolution, the Parliament notes that the EU strategy for LNG and gas storage forms part of the energy union. The Commission proposed its strategy in February within the framework of the strategy for gas security (see EUROPE 11484 and 11491).
The Parliament underlines the significance of LNG to EU security of supply, given current developments on the LNG market where oversupply has led to lower prices, presenting an opportunity to deliver lower energy costs to EU consumers through relatively cheaper gas supplies.
MEPs subscribe to the Commission assessment that the countries of the Baltic and Central and South-Eastern European regions and Ireland remain largely dependent on one single supplier and are, therefore, exposed to possible disruption of supply, and they highlight that the availability of LNG could considerably improve these countries’ security of supply.
The Parliament calls on the Commission and member states to support and promote greater energy efficiency and better use of existing infrastructure (including for gas storage), taking a cross-border perspective before embarking on the construction of new facilities.
For the construction of new LNG terminals, MEPs underline the need for increased regional cooperation, and stress that countries with access to the sea should cooperate closely with landlocked countries. The MEPs underline that better use of west-east and north-south corridors, with improved reverse flow capacity, would increase LNG supply options.
The Parliament also calls on the Commission and member states to put in place strategies to support facilities that can be used in the future to manage the transfer and storage of renewable natural gas.
With a view to connecting LNG and storage to markets, the Gyurk report underlines the importance and effectiveness of the work of regional high-level groups, such as the Central East South Europe Gas Connectivity High Level Group (CESEC), the Baltic Energy Market Interconnection Plan (BEMIP) and the South-West Europe group.
The Parliament stresses, too, the importance of finding cost-effective energy supply options to improve security of supply in member states, such as Cyprus, Malta and Ireland, on the periphery of the EU.
MEPs highlight their concerns over the doubling of the capacity of the Nord Stream pipeline and warn that this could have counterproductive effects for energy security, the diversification of supply sources and solidarity among member states.
On the international level, the Parliament recommends exploring new gas partnerships with Central Asia, the Americas and North Africa, engaging in negotiations with major LNG suppliers, such as Australia and the United States (TTIP being important in this regard) and working closely with international partners towards a competitive and transparent global LNG market.
Lastly, MEPs call for adequate funding for R&D on LNG and gas storage in the EU. (Original version in French by Emmanuel Hagry)