European gas sector Sample Clauses

European gas sector. The dynamics of the demand for gas in the EU have been changing in recent years. The decline in demand for natural gas that has been observed over the past decade can be attributed to a number of factors: i) decreased industrial activity as a result of the economic crisis; ii) the price of natural gas compared to coal and renewables in the power sector; iii) the increased share of renewable energy and electricity storage as a result of government policy, cost reduction and technological development. This has created uncertainty about the future demand for natural gas in the EU. Nevertheless, most projections for the next decade foresee a robust demand for gas and potential increases in pipeline and LNG imports in Europe, due to decreasing domestic gas production. In the 2030 demand projections, the term ‘gas’ is unambiguous, referring almost entirely to natural gas, i.e. CH4. During this time frame, natural gas switching can represent an option for the decarbonisation of the power sector of member states that are heavily dependent on coal. In Germany, for example, as a result of the planned nuclear and coal phase-outs, it is expected that natural gas will increase its share in the electricity sector by 2030 (Agora Energiewende, 2018, p. 29). Numerous other European countries have also announced their plans to phase coal out over the next decade. As a result, significant coal generation capacity in Europe needs to be replaced by other sources of energy (Xxxxxx Xxxxxx, 2019). Given this trend also the infrastructure of gas transport shall be adapted. Indeed, sustained investment in domestic gas transmission and distribution networks is essential for continuing to expand access to gas in new cities and across different economic sectors. Europe and North America have developed extensive gas transmission and distribution grids over many decades, enabling access to gas in nearly all cities. In non-OECD markets, the development of gas pipelines will be critical for enabling growth as local gas infrastructure is often lacking. In India, for example, it is projected that domestic transmission capacity will need to increase by over 60% (from 16k km to over 26k km) by 2020 to make gas available to additional cities where gas distribution is planned (GAIL). Gas storage infrastructure is another key component of supply security. In Europe and North America, substantial underground storage capacity is available, equivalent to between 15-25% of total annual gas consumpti...
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