Cyprus Mail: Golden age of natural gas

An unexpected consequence of the shale oil and gas boom in the United States, which commenced in the mid-2000s, was that US coal exports have increased significantly. In fact, US coal shipments have doubled ever since to 100 million tonnes with a sizeable amount – about half of that – being diverted to Europe and Germany, in particular.

Part of this trend is attributed to the economic crisis and the fact that the EU’s competitiveness suffers from high energy costs. Nuclear energy aside, lower investments in renewable energy sources imply that EU countries will have to meet their short-term energy needs from other energy sources, probably from fossil fuels. Oil is predominantly used in the transportation sector, with a few exceptions for power generation – such as Cyprus.

Power plants, on the other hand, are typically fuelled by either coal or natural gas. Narrowing down options, several EU countries are confronted with the challenge of choosing between coal and natural gas. Add to this the geopolitical dimension from the EU-Russia spat, which surfaced after the Crimea annexation, and coal becomes the clear contender.
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