European trends in natgas demand to require development of new import routes: Snam

Oil&Gas Materials 19 February 2019 15:53 (UTC +04:00)

Baku, Azerbaijan, Feb.19

By Leman Zeynalova – Trend:

European trends in natural gas demand will require development of new import routes, Trend reports citing Italian Snam company.

In the coming years there will be a significant increase in demand in the global gas market, driven by the Americas and by China, where an increase in energy requirements will be accompanied by the growing role of renewable energy, more efficient technology and the gradual transition from other fossil sources to natural gas, according to the company’s report.

Snam believes that gas will continue to play a central role in the process of decarbonisation in Europe as well, in line with the objectives defined (2020 Climate & Energy Package) or in the process of definition at EU level (Clean Energy Package) specifically making an important contribution to the transport and thermoelectric sector, in view of coal gradually being phased out of production and the increase in intermittent renewable sources.

“The use of the latter, which is hardly foreseeable, will require greater support from natural gas, a source which, can be programmed,” said the Italian company.

“Volumes in Italy remain essentially stable. European trends in natural gas demand, supported in particular by the reduction in the use of coal, together with the decline in domestic production, will require the development of new import routes,” reads the report.

In this context, Snam anticipates an acceleration in the investment plan (5.7 billion euros in the five-year period 2018-2022), with a continued focus on replacement and maintenance in order to guarantee the maximum resilience, flexibility and efficiency of existing infrastructure.

Snam is Europe’s leading gas utility. It has been building and managing sustainable and technologically advanced infrastructure guaranteeing energy security for over 75 years. Snam operates in Italy and, through subsidiaries, Austria (TAG and GCA), France (Teréga) and the United Kingdom (Interconnector UK). It is one of the main shareholders of TAP (Trans Adriatic Pipeline) and is the company most involved in projects for the creation of the Energy Union.