According to the latest analysis from PIRA Energy Group, the LNG supply side seems focused on challenging coal for a lead in the race to join forces with renewable energy to meet incremental power generation demand.
The supply side, led by LNG players with portfolio volumes looking for end-user markets, seems focused on challenging coal for supremacy in the race to join forces with renewable energy to meet incremental power generation demand. In summary, key figures attending the World Gas Conference in Paris, France, are offering a policy-driven solution to solve a commercial problem.
European gas prices
PIRA’s analysis noted: “Sometimes it's difficult to think of European gas markets as a proving ground for the next phase in the evolution of the global gas industry. After all, this market was dragged kicking and screaming into the spot market era, and even today large portions of the market remain relatively uncompetitive by oil market standards.”
The European gas market has shown that being resistant to change in one area does not prevent change from occurring elsewhere. This has been witnessed in the gas market for power generation over the past five years, and the next phase of testing will occur in the form of integrating more LNG into the supply mix.
Adapted from PIRA press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/09062015/lng-vs-coal-in-race-for-energy-mix-918/