November 15, 2023 11:51 GMT
Europe to Rely on Gas for At Least 20 Years: Axpo
Switzerland’s Axpo Holding AG suggests Europe will rely on natural gas for at least 20 more years during the development of cleaner alternatives according to Bloomberg.
- “We have no other solution,” said Domenico De Luca at Axpo. “We’ll be depending on gas. There is no other way which we can cope with stochastic production of renewables.”
- Europe doesn’t have short-term alternatives to gas without the necessary infrastructure for less polluting fuels such as hydrogen.
- European utilities are reluctant to agree long-term LNG supply agreements amid pressure from investors to reduce emissions, added De Luca.
- Major producers including Shell Plc and Woodside Energy see a long term role for gas amid the energy transition although IEA forecast demand to peak this decade. Shell and TotalEnergies have both recently agreed LNG supply deals from Qatar for delivery to Europe beyond 2050.