There are significant areas of uncertainty for the European gas market in both the short and long-term. The long-awaited LNG push into Europe may be underway, and this would pose challenges for the commercial strategies of Gazprom and other pipeline suppliers. Trends for indigenous production are negative, with Dutch production being curtailed and offshore gas development in Romania delayed. Is there any prospect for unconventional gas to change the picture? In the longer term, existential questions remain regarding the future of gas in a low-carbon Europe. Can gas still have a major role despite EU mandates, or does the industry’s future rest on a gradual shift from methane to hydrogen?
As Europe is finalizing its 2050 climate and energy targets, how will this shape the opportunities for investment in renewables, storage, and flexibility? Europe’s targets are ambitious and raise several questions: What frameworks and policies will be required to meet the targets? Are the targets realistic? What will be the impact for existing assets? How to address financial and nonfinancial barriers to the deployment of new technologies?