European Union rules governing gas transmission systems have helped increase competition on the supply side, allowing more EU gas consumers to benefit from lower prices, according to a report published on Wednesday 23 September by the EU Agency for the Cooperation of Energy Regulators (ACER).
The paper also shows that the presence of increasingly “liquid” hubs and the large regasification and storage capacities in the EU are attracting global suppliers of liquefied natural gas (LNG) to Europe.
As a result, LNG imports into Europe in 2019 increased by 90% over the previous year, leading LNG to account for 20% of EU natural gas demand. It is “by far its highest aggregated market share to date”, says ACER.
ACER further states that “carbon neutral” gases (mainly biogas) account for only about 4% of current gas consumption in the EU, as they “are far from being competitive at current prices”.
In order to accelerate the consumption of this type of gas, the Agency recommends that the decarbonisation of the gas sector be based on the current market design, so that the transition to “carbon neutral” gases does not lead to market fragmentation and that the benefits for consumers are maintained.
See the report: https://bit.ly/307wT3H (Original version in French by Damien Genicot)