According to recent research, over the next ten years, Europe’s growing gas consumption is predicted to fuel significant new investments of billions worldwide. The report, which used data from Rystad Energy and was conducted by the climate advocacy group Global Witness, emphasizes the region’s significant carbon impact while lowering emissions.
Leading the expenditure on new developments are two US liquefied natural gas companies, Venture Global LNG Inc. and Cheniere Energy Inc., according to the Global Witness report. Additionally, industry giants TotalEnergies SE and Equinor ASA feature prominently on the list. The fossil fuel industry, as a whole, is projected to invest a staggering $1 trillion in gas production for Europe until 2033.
These findings underscore the persistent growth of Europe’s gas demand, despite emission reduction efforts. This trend is particularly noticeable as Europe rebuilds its energy infrastructure following reduced gas supplies from Russia in the aftermath of the conflict in Ukraine. The International Energy Agency predicts a 3% increase in Europe’s gas consumption this year, slightly surpassing the global average but trailing behind the leading 4% rate in Asia.
Gas is kind of cleaner than other fossil fuels, but building gas projects is getting harder because people worry about climate change. So, it’s not clear which ones will actually get built. A major disruption to investments may result from the Biden administration’s recent suspension of the granting of new US licenses for LNG exports in order to investigate their climate impact.
Europe heavily relies on imported gas from the US and Qatar, the world’s top LNG suppliers, and is also exploring increased production within its borders as part of the energy transition. Germany, the largest economy in the region, is contemplating supporting a substantial expansion of its gas plant fleet, potentially incorporating hydrogen combustion.
Expressing concern about Europe’s reliance on fossil gas, Dominic Eagleton, senior fossil fuel campaigner at Global Witness, urges the European Commission to set a phase-out date of 2035 for the fuel. Burning all the gas Europe expects to find by 2033 would release as much carbon dioxide as France does in over 20 years! That’s a lot of carbon dioxide, and it’s not good for the planet.
Europe’s trying hard to fight climate change, but some deals companies make might not help. The EU will soon say it wants emissions to drop by 90% by 2040, but gas will still be used. A study found big companies like Exxon and Shell will spend billions bringing gas to Europe over the next 10 years. This raises questions about whether those deals are good for the planet.
