Long-range role of natural gas in the EU green transition: analytical overview

Roman S. Yukhymets

Abstract


Pan-European and national policy documents were reviewed that set the goals for the development of the European economy and energy. The objective of this paper is due to changes in European policy vision of the natural gas’s future prospects of in the context of establishing strict climatic requirements and the desire to achieve a carbon-neutral level of the European economy development. In previous periods, it was believed that until the 2040s-2050s we can expect the “Golden Age” of natural gas, which was due to the success of the "shale revolution" in the United States, significant expectations of a repeat of the US success of shale gas production in other parts of the world, increased transportation of natural gas by pipelines and LNG tankers; decreased growth rate of a nuclear energy and further cost reduction of a shale gas production.

A change in the European energy policy towards the strengthening of environmental requirements, reduction of greenhouse gas emissions and emerging of EU's role in combating climate change causes uncertainties regarding prospects of natural gas as an energy resource in Europe. By choosing the European vector of development, Ukraine is interested in meeting requirements of EU policy within the framework of its international obligations and European integration ambitions. This makes it necessary to adapt national development programs and strategies to new conditions and challenges that arise in the EU. The analysis of the main EU policy documents on prospects for the natural and other synthetic gases development allows us to begin to reassess national development plans for adapting the internal developed gas infrastructure to new market opportunities, which will permit Ukraine to increase its competitiveness in the gas market further, and consumers will be able to receive energy resources at more competitive prices and an appropriate quality of service.

The complex of problematic issues that arise in the EU member states regarding the formation of incentives for the introduction of synthetic, "green" gases, adoption of appropriate regulatory mechanisms, formation of effective financial mechanisms that would attract investment in the development of a new infrastructure or development of new technologies requires from Ukraine to define priorities of its economic development, to form a roadmap for the energy system transformation in accordance with new international requirements, internal needs and economic opportunities to implement corresponding technological transformations. The central government after consultations with interested participants in the energy market should form a nationwide vision of the vector for the energy sector development in Ukraine and the place of natural gas in the energy supply of Ukraine until 2050.


Keywords


markets, natural gas market, synthetic gas, green gas, energy strategies, energy transformations, Green Deal

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References


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DOI: https://doi.org/10.15407/econindustry2020.03.029

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