With the advent of terms such as “gas revolution” and “green gas”, the global gas market is gaining momentum. In this view, Europe is steering towards the idea of “one competitive European gas market”. The foresight of this model is not only limited to 28 states of Europe but is aimed towards creation of connection of liquid cynosure where gas traders can compete and at the end consumers shall be benefitted.
The first challenge in this venture was the rate at which the European gas imports have been predicted to escalate. By 2035, European gas imports are expected to increase by 60% to 80% of the current imports. The next challenge was the constraints set up by member EU states on the rights of individual share of energy mixes and influence on the internals of gas market model.
Till now Europe gas imports was dependent on Norway, Russia and Algeria.
As the measure towards addressing the challenges, Europe formalised southern gas corridor. By 2019 it is expected to start supporting demands by harnessing gas coming from the Caspian Sea through TANAP (Trans Anatolian Pipeline) and TAP (Trans Adriatic Pipeline). Also, LNG terminal was under construction in the Baltic States. The next measure is focussed around the Commission’s target to reduce greenhouse gas emissions by 40% till 2030.
Mr. Dieter Borchardt, Director B, DG Energy – European Commission outlines the implication of LPG as the “fuel of opportunity” due its least carbon footprint and emissions compared to gasoline fuel. Whilst LPG is being considered “today’s fuel” yet the growth of LPG market is experiencing resistance due to low coal and ETS prices.
In view of the triangle of EU policy Mr Borchardt said, “For us, a well functioning internal energy market is key for all the three objectives.”
Europe is one of the biggest gas markets across the globe. Therefore, in order to create an efficient functioning gas market it is important to create suitable conditions for the same with reasonable amount of investment, free flowing cross border transportation and uniform pricing
