European Union´s decision to reduce EU Member Sates’ energy dependence on Russia will have a major impact on the energy market in general and on the gas market in particular. The European Union’s plan, known as REPower EU, aims to reduce the Russian gas imports by 66% this year. This is an extremely ambitious target, since Russian gas accounts for more than 40% of the total gas imported by EU Members, on average. In countries such as Germany and Poland, for example, this percentage is even higher, representing 65% and 55%, respectively.
One of the main alternatives to Russian gas that the EU has in mind is the import of Liquefied Natural Gas (LNG) in ship carriers from the US and Qatar. The LNG arriving in Europe is unloaded at regasification plants where the temperature is increased and the gas is, finally, fed into the pipeline. This solution, however, brings with it a problem in the near future. This problem is shortage.
Global LNG demand is forecast to reach 436 million tons in 2022, while the available supply is not expected to exceed 410 million tons. This complicated situation could likely pose major energy supply problems as the end of the year approaches. Although rising LNG prices have encouraged the promotion of LNG production projects around the world, these projects will not influence supply for other two years or three. In other words, the energy market forecast for the end of the year in Europe is not going to be far from tight.
President Biden made a pledge to help Europe but at this moment the amount of gas in storage in the USA is 17% below the five-year average for this time of the year and the liquifying plants are already working at full capacity.
Although gas prices are set to roar and the EU is going to increase its commitment to renewable energy, LNG, and gas in general, is seen as one of the pillars of the European energy mix. It will be necessary for all the combine cycle gas turbine (CCGT) Power Plants in Europe to operate as efficiently as possible, avoiding gas wastage and enabling renewables to lead the way in energy production.
In such a competitive market, ADEX, a cleantech software company specialized in optimizing the performance and sustainability of CCGT, becomes a backbone in the European energy ecosystem. Thanks to its Self-tunning Artificial Intelligence Platform, ADEX helps CCGT Power Plants to be cleaner and more efficient. Thus, they can be more dispatchable and perform a more flexible operation. For more information about the disruptive technology of ADEX, visit our website: https://www.adexcop.com/