K EY FAC T S A BO UT GAS IN TH E E U

GAS REPRESENTS AROUND THE AVERAGE FINAL THE EU-27 PLUS UK GAS THE EU IMPORTS THE RESIDENTIAL SECTOR

21.5% 40% 80%

HOUSEHOLD PRICE FOR kWh SUPPLY BILL RANGES FROM ACCOUNTS FOR MOST EU

75-100 BN €
OF ENERGY FROM GAS IS GAS DEMAND

OF THE EU’S PRIMARY

ENERGY CONSUMPTION.
OF HOUSEHOLDS
ARE CONNECTED
TO THE GAS NETWORK.
6.5
cents/kWh,
PER YEAR,
depending on the wholesale
sourcing price levels.
OF ITS TOTAL GAS NEEDS.

Domestic production has

40%
FOLLOWED BY INDUSTRY
It is the dominant three times lower than from halved in the last 10 years. AND GAS USE FOR POWER
source of energy On average, they spend electricity – 21.6 cents/kWh. At retail level, GENERATION.
for households – 32.1%. EUR 700 on gas, 2.5% the final expenditure on gas
of their average income accounts for approx. Industry consumption has
(EUR 27,911). However, EUR 200 bn per annum. declined by 20% since 2000,
this conceals considerable whereas in the same period
differences among
gas use for power
Member States.
generation has risen by 15%.
These trends are due to the
EU’s economic transition from
industry to energy services
and structural changes in the
energy-intensive industry.
K EY AT T RIBUTE S O F GAS AN D TH E I N TE R N AL GAS M AR KE T

The EU gas network is capable THE VALUE OF THE MARKET INTEGRATION HAS A more complete realisation The resilience of the EU An efficient internal gas
of transporting and storing TOTAL INFRASTRUCTURE SHOWN ITS EFFECTIVENESS of the Internal Gas Market gas system has increased market based on the
large quantities of energy. INVESTMENTS IS IN AREAS COVERING could still bring extra benefits, significantly in recent years progression of liquid hubs

3/4
It constitutes more than APPROXIMATELY chiefly to some Central and East following regulatory initiatives is the best guarantee of

200,000 km 65 BN €
European, South South-East and
Mediterranean Member States.
(Network Codes, reverse
flows, etc.) and relevant
the security of gas supply
across the Union; the system
OF TRANSMISSION PIPELINES, Sourcing gas there at the infrastructure investments has proved its resilience
OF EU GAS CONSUMPTION. price levels attainable at most that have contributed to under all recent weather and
in EU Transmission System
+ 2,000,000 km Operators’ regulated asset
bases. Gas price convergence
liquid North West European
hubs would yield at least
diversify the origins of supply. political/technical situations.

3 BN €
OF DISTRIBUTION NETWORK is notably strong in
Distribution assets add North West Europe.

+ 20,000 to that figure at least by a

factor of 3.
COMPRESSOR AND
PRESSURE REDUCTION
STATIONS.
T HE ROLE O F GAS IN A TRA N S I TI ON P H AS E TOWAR DS DE CA R B O N I SAT I O N

A) The European Green Deal aims to fully decarbonize the gas sector by 2050

THE GAS SECTOR ACCOUNTED FOR TO MEET THE DECARBONISATION TARGETS, THE REDUCTION OF METHANE LEAKAGES

1/4
THE EU AIMS TO SHIFT INTO IS ALSO IMPERATIVE.

LOW-CARBON GASES
THE EU AIMS TO REDUCE THEM BY

OF EU’S GREENHOUSE GAS EMISSIONS IN 2020.

Its relative share has slightly risen over the last decade as an
WHILST REDUCING ITS TOTAL GAS CONSUMPTION.

A clear roadmap still needs to be approved. Commissioner Kadri

Simson: “The bloc needs to cut its gas demand by 25% by 2030”.
29%
outcome of the decrease in consumption of coal and oil and by 2030 compared to 2005 levels.
of coal to gas switches (the emissions associated to power
generation at newer gas-fired plants are up to 50% lower than
at newer coal-fired plants).
T HE ROLE O F GAS IN A TRA N S I TI ON P H AS E TOWAR DS DE CA R B O N I SAT I O N

B) Biogas and hydrogen will play the leading role

THE MAJOR CHALLENGE IS

IN 2020 THE INDUSTRY AND POLICY MAKERS REDUCING THE LOW CARBON GAS CURRENT

4% H2
PERCEIVE THE TRANSITION AS A PRICE GAP, WHICH MAKES IT AT LEAST

STRATEGIC
BUSINESS 3X
OF TOTAL CONSUMED GAS HYDROGEN HAS BECOME THE CENTRAL
COSTLIER
IN THE EU-27 PLUS UK
WAS LOW-CARBON GAS, CHIEFLY BIOGAS.
ELEMENT IN THE PLANS TO DECARBONISE
THE SECTOR. OPPORTUNITY. THAN CONVENTIONAL GAS.
Total volumes have more than National Energy and Climate Plans and Investments for carbon neutral gases Technology and scale improvements, together
doubled in the last 10 years. the European Commission strategy have production, additional energy generation from with a revision of carbon emissions costs are
committed to install 2x40 GW of electrolysers renewable sources and network adaptation needed to make blue and green hydrogen
by 2030. could mobilize hundreds of billions of euros competitive across the next decade(s).
until 2050.
LOW CARBON GASES
ARE TO ACCOUNT FOR MORE THAN
15% OF GAS CONSUMPTION BY THEN.
THE ROLE OF GAS IN A TRANSITION PHASE TOWARDS DECARBONISAT I O N GAS AND THE COVID-19 CRISIS

C) Impacts on the sector in the years to come

EUROPEAN GAS
VARIANT PRESENCE OF GAS TYPES ACROSS MARKETS The gas sector demonstrated GAS PRICES REACHED
MAY ENTAIL SOME its resilience during the
HISTORICAL
RISK OF MARKET
Covid-19 crisis:
RECORD
NETWORKS
EU GAS CONSUMPTION FELL

WILL REQUIRE ADAPTATION AND SOME NEW INVESTMENTS

TO ENABLE THE LOW CARBON SHIFT.
FRAGMENTATION
OR HINDER WHOLESALE TRADING IF SOME TECHNICAL
4%
YOY IN 2020
LOWS
IN MID-2020, AMID
COVID-19 IMPACTS
ASPECTS ARE NOT MADE COMPATIBLE. COMBINED WITH INCREASED
The reduction in demand could lead to some existing gas WHILE OIL DEMAND LIQUEFIED NATURAL GAS
infrastructure becoming stranded. DROPPED BY 12% AVAILABILITY.
AND COAL BY CIRCA 25%.
Following the opening up of
economies, prices gradually
recovered from autumn 2020.