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    European Gas Strategy Could Support Coal Usage in Short Term

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Summary

European gas strategy hinges on stress tests and related short term solutions, while also working to decrease reliance on gas imports.

by: Sergio

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European Gas Strategy Could Support Coal Usage in Short Term

European gas strategy hinges on stress tests and related short term solutions, while also working to decrease reliance on gas imports. 

“In the short term, our Strategy proposes to launch stress tests that simulate supply disruption, as a worst case scenario. On the basis of these we will detail emergency plans and backup mechanisms. These may include increased gas stocks, reverse flow pipelines, fuel switching to decrease gas demand, or other very short term measures to reduce demand,” Günther Oettinger, European Commissioner for Energy, said on Thursday

From Oettinger’s speech seems clear that coal could increase its share in the energy mix in the short term. However, this would be a transitory measure. In the longer term, a more complex strategy will be implemented. Renewables and the creation of one single market remain Europe’s top priorities, said the Commissioner.

“The Commission is looking to diversify supplier countries and routes, strengthen emergency mechanisms, protect critical infrastructure, moderate energy demand, increase indigenous production, and further develop energy technology. In essence, it means we need to complete the internal energy market: building missing infrastructure links and strengthening regional cooperation, and make further progress on the third energy package.”

Difficulties are clear, exacerbated by differences between countries. As pointed out by Oettinger, while Portugal, Spain, Ireland and the UK don’t “have Russian gas,” there are 18 Member States that import between 10 and 80% of gas from Russia, and there are 6 Member States that are 100% dependent on Russia.

Oettinger also noted that a deal between Kiev and Moscow would be beneficial for Ukraine, Russia and also the European Union.

“This is not a zero-sum game. If we can't come to a package, to solve the issues of price and debt, we will all loose.”