Europe’s imports of natural gas will surge 50% by 2030 as domestic production falls, according to a new report.
It claims Europe’s gas imports could increase to 320 million tonnes of oil equivalent (Mtoe) a year by 2030 from the current 215 Mtoe. Reliance on Russian gas will continue despite EU efforts to become less dependent on Moscow in light of the Ukraine crisis.
Massimo Di-Odoardo, Principal Analyst- European Gas and Power for Wood Mackenzie, which published the report said: “The ongoing crisis in the Ukraine has focused attention on Europe’s reliance on Russian natural gas. Russian gas remains competitive against other alternatives and will continue to be the cornerstone of European gas supply.
“It also represents a major market for Russian gas, even in light of the recent signing of a gas pipeline deal to export Russian gas to China. Therefore, our long term view is that the Europe-Russia gas relationship will continue out of necessity.”
The report also suggests India and China will be the destinations for exporters of coal, oil and gas and energy demand growth within Asia-Pacific will outpace that of North America by five times by 2020.
By 2018, North America is expected to overtake the gas output of Russia and the Caspian and by 2030 grow to become the world’s largest gas producing region, with production doubling to 1,000Mtoe.