The document discusses the viability of diversifying the European gas market. It notes that in the first quarter of 2020, European gas consumption decreased 5% while imports from Russia fell 23%. The European Union has been seeking to diversify its gas sources and routes of import in order to increase energy security and reduce reliance on Russia. Options discussed include expanding domestic production, developing the Southern Gas Corridor to bring gas from the Caspian Basin and Eastern Mediterranean, and increasing liquefied natural gas imports from sources like the United States and Qatar.

1. EUROPEAN GAS MARKETS – DO YOU THINK IT WILL BE
VIABLE FOR EUROPEAN MARKET TO DIVERSIFY?
PRESENTED BY GROUP 5:
1. ARCHANA SINGH (R020219013) 4. SWARNALI ROY (R020219052)
2. CH V SUPRIYA (R020219018) 5. ASHMITA BRAMHA (R020219078)
3. SAI SRI AGASTYAN (R020219046)
UPES, Dehradun

2. European Gas Market
Consumption(2019) Production(2019)
2020(Q1) - 5% decrease in consumption
- decreased by 20% in Romania, Latvia, Finland ,Slovakia
and in Estonia
- Major decrease in Germany and Italy
2020(Q1)- production is 15.6bcm (20%less than previous
year)
1% increase in UK and 13%,17%,20% & 3.4% fall in Germany,
Italy, Ireland & Norway respectively
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3. Imports
• 2020(Q1)- 6% fall in net imports
which is 80.9bcm
• 5% fall in the gas demand
• imports from Russia fell
significantly by 23%(which has 40%
share in imports of EU)
Why diversification:
• Shift towards greater use of gas as a part of EU’s Energy Supply strategy
• Decreased production in EU & increased concerns about reliability on Russia for its imports
• Pipeline gas supply interruptions due to Russian disputes with Ukraine
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4.  As Depicted in Fig 1, under the assumption of a
constant demand, the first option involves
expanding domestic production through the
permission of shale gas production.
 The only option EU left with was the
Diversification on import share.
 EU been better positioned to add new gas
suppliers hovering on the horizon to its already
diverse basket of providers.
 Trans Adriatic Pipeline (TAP) ultimately won
against Nabucco to deliver Azeri gas to EU via
“Southern Corridor”.
 Another promising new source of gas is the
Eastern Mediterranean.
DIVERSIFICATION: New gas from new supplier
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5. Russia Diversification Strategy
Beyond Nord Stream 2
Russia-Turkish Pipelines
LNG Pipelines & Terminals
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6. Russia has long been the dominant source and supplier of natural gas to Europe’s mass market.
But the U.S. is looking to challenge Russia by stepping up its imports of U.S. liquefied natural gas (LNG) gas which is
super-cooled to liquid form making it easier and safer to store and transport.
Factors to be considered: -
 US sanctions on EU companies.
 Germany Political issues.
 Nord Stream II and Europe
 US “Freedom Gas”
New Cold war- EU as a battle ground between USA & Russia: -
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7. EU gas Supply and Consumption in 2017-19:-
EU Net LNG Imports by Exporting Country
Extra Png & LNG imports in major EU countries in 2019: -
Growing Competition between Pipeline gas and LNG
supplies in the European Union amid Covid-19 Outbreak: -
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8. Developments in European Union’s Energy Policy
Liberalisation and Integration European Energy Union to the European
Green Deal
Adoption of
the “Third
energy
package
policy”
Concept of
“Unbundling
”
European
commission
the guardian
of the EU
treaties
Let us answer :
1) Why there was a need of development in the Energy Policy of EU?
2) What does the “Now” EU Energy Policy aim at?
WIND & SOLAR
ENERGY
EFFICIENCY
NUCLEAR POWER
HYDROGENUPES

9.  Russian supply
 Norwegian supply
 North African supply
 LNG supply (Qatar and US)
 Domestic production UK and
Netherlands,
Sources of European Gas Imports
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10. Diversification of gas supply sources and routes by EU
 Opening up the Southern Gas Corridor which aims to expand infrastructure that can bring gas to the EU from the
Caspian Basin, Central Asia, the Middle East, and the Eastern Mediterranean Basin.
EU actions include:
1. keeping the infrastructure projects needed for the corridor on the EU's fourth list of Projects of Common
Interest (PCI).
2. supporting the construction of the Trans Anatolia Natural Gas Pipeline (TANAP) and the Trans-Adriatic-Pipeline
(TAP) to transport gas from Azerbaijan to Italy via Georgia, Turkey, Greece, Albania and the Adriatic Sea by listing
them on the PCI lists
3. cooperating closely with gas suppliers in the region, such as Azerbaijan
4. cooperating closely with transit countries including Azerbaijan, Georgia, Turkey and Albania
5. negotiating with Azerbaijan and Turkmenistan on a potential Trans-Caspian pipeline to transport gas across the
Caspian Sea
 Developing the Mediterranean hub
- Israel, Egypt and Cyprus, because of their significant offshore gas reserve, make the Eastern Mediterranean region a
strategic partner for the EU in its effort to diversify its gas supply routes.
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11.  The risk of supply disruption is the greatest security threat therefore EU should
focus on how to advance transatlantic energy cooperation to further transition
to a low-carbon economy.
 EU should expand domestic processing and strengthen relationships with
potential producers around the globe, such as in Africa or Australia.
 Its impractical, for EU members to consider replacing all Russian natural gas.
Russia not only holds the largest supplies of natural gas globally but also has
significant infrastructure connecting its resources to Europe.
 EU should focus in developing a more coherent energy policy
 Supporting flows of natural gas supplies to Europe from the Caspian region and
Central Asia and evolving global LNG trade may provide some energy security,
and curb Russian influence.
 The European Union-Russia China energy triangle : which might change the
price dynamics of the region.
 Should focus on recent discoveries in middle –east region.
Conclusion : Prospects for Diversification
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