LNG as a Future Transport Fuel in Europe
Small scale liquefied natural gas (LNG) infrastructure and markets will have much more competitive advantages in the short term, according to Gazprom Germania GmbH.
Russia’s energy company Gazprom foresees a positive global outlook for natural gas and expects an increase in demand for Russian supplies in Europe due to declining production figures in the Old Continent, as well as increasing demand from the transport sector (maritime and road).
“EU emissions reduction agenda drives the development of small scale LNG market. Conservatively speaking, EU demand for small scale LNG will reach 43 bcm p.a. in 2030,” said Timo Vehrs, Head of Business Development at Gazprom Germania GmbH, during a conference in Tallinn.
According to Vehrs, LNG as a transport fuel alternative should be further debated at the European level.
“The key factors for the development of LNG demand are regulation and policies – which are already on implementation - competitive pricing, availability of vehicles and ships, as well as of both storage and distribution infrastructure. Such steps should be implemented fast,” Vehrs added.
Gazprom, jointly with E.ON Ruhrgas, recently organized the so-called “European Blue Corridor Rally 2012”, an initiative that saw vehicles – cars, trucks and buses – operating on compressed natural gas (CNG) and LNG driving across European cities from Moscow to Berlin. The initiative was aimed at drawing attention to the benefits of natural gas as an alternative fuel and saw the vehicles driving over 6700 miles during 17 days.
Vehrs also stressed the importance of joined regional efforts to create sufficient infrastructure to cope with future market’s growth and demand.
“LNG growth will be driven by demand from international heavy-duty transport, bunkering markets and off-grid customers. From Gazprom, we want to push forward the development of the LNG market in the Baltic region and Central Europe through the provision of sustainable and competitive supply of this energy source, and develop dedicated infrastructure based on long-term partnerships,” the Head of Business Development at Gazprom Germania GmbH said.