European countries draw criticism for plans to spend € 84.1bn on new gas projects
San Francisco, US – Us-based think tank Global Energy Monitor (GEM) criticised European countries for planning to invest € 84.1bn in natural gas, 'as if it is still in crisis,' despite being in a much safer position than two years ago.
In its latest report, GEM noted that Europe's planned natural gas projects, if built, would increase its import capacity by 55%.
According to the report, Europe already has twice as much import capacity as its liquefied natural gas (LNG) demand and this could quadruple by 2030 if the planned projects are built.
'With € 84.1bn in new liquefied natural gas (LNG) terminals and gas pipelines in planning, a gas infrastructure buildout is proceeding in Europe as if the region were still in crisis, even though it is in a far more secure position than it was two years ago,' it said in the report.
It stressed that the EU'S goal of reducing emissions by 55% by 2030 would be in conflict with the fact that, if the LNG terminals and gas pipelines now under construction are operated to their maximum capacity, they will produce emissions equal to fifty coal power plants on an annual basis.
The report stressed that high gas investments are not in keeping with Europe's energy transition, particularly given the increased renewable energy production in Europe and wind power, which surpassed natural gas for the first time last year.
According to GEM, European countries are developing 248.7bn cubic meters (bcm) of new LNG capacity as well as 16,491km of pipelines. This includes cross-border pipelines that could import 46 bcm of gas per year.
According to GEM'S forecasts, Europe's LNG import capacity was 319 bcm last year, while demand remained at 167 bcm. Demand is expected to fall to 135 bcm in 2030 and capacity is projected to increase to 568 bcm.
Projects and plans
The countries with the most LNG import capacity under development in Europe are Germany with 98.9 bcm, Italy with 31.3 bcm, Greece with 26 bcm and the UK with 24.2 bcm, according to the GEM report.
Germany stands out as the country with the greatest LNG import capacity under development in global markets, after China and India, despite having no import facilities two years ago.
Greece ranked first in pipeline construction with 2,795km, followed by Italy with 1,923km, Poland with 1,516km, Serbia with 1,081km and Romania with 1,052km.
The report also disclosed that Europe's LNG plans have progressed rapidly since the beginning of 2022, but the delays seen in 2023 could be considered an indication of waning enthusiasm.
Following the outbreak of the Russian-ukrainian war in February 2022, European countries committed to reduce their natural gas imports from Russia.
EU countries mainly use natural gas for power generation, industrial and residential use. In 2021, the bloc was dependent on Russia for around 45% of its gas imports.