Will Europe need LNG? | Aad Correljé

At the margins of the residential part of the Annual Training on the Regulation of Energy Utilities, Maria Olczak (FSR) talks with Aad Correljé (Clingendael, TU Delft) about LNG markets. In February 2016, the European Commission has published an EU strategy for liquefied natural gas and gas storage as a part of its sustainable energy security package. The LNG is perceived as an important element for ensuring energy security, especially in regions currently dependent on a single gas supplier, and hence vulnerable to any supply disruptions. Nevertheless, European countries need to compete with other markets, especially the Asiatic ones for the delivery of LNG. So far Europe has been perceived as a “market of last resort”, since LNG exporters have been targeting the premium consumers in Asia. Given that domestic gas production in Europe is declining faster than expected, competition for access to energy supplies will likely increase in the future.. Aad addresses two main questions - what will be the role for Europe in global LNG markets? And what will be the role of LNG in the European energy mix?