Image : Shutterstock . com .
more diversified natural gas supply has intensified demand for liquefied natural gas ( LNG ) cargoes , with some being diverted away from Asia . Average spot LNG prices in Asia during the 2021-22 heating season were more than four times their five-year average . In Europe , spot LNG prices were five times their five-year average , in spite of a mild winter . The prices were also boosted by Russia ’ s moves , even before its invasion of Ukraine , to drastically reduce short-term gas sales to Europe , which had left European storage levels 17 % below their five-year average at the start of the European heating season .
“ Russia ’ s unprovoked attack on Ukraine is above all a humanitarian disaster , but it has also triggered a major energy supply and security crisis ,” said Keisuke Sadamori , the IEA Director for Energy Markets and Security . “ While stiffer competition for LNG supplies is inevitable as Europe reduces its reliance on Russian gas , the best and most lasting solution to today ’ s energy challenges would be to accelerate energy efficiency improvements across our economies and accelerate the transition away from fossil fuels towards low-carbon sources of energy , including domestically produced low-carbon gases .”
Russia is Europe ’ s largest natural gas supplier , meeting 33 % of the region ’ s demand in 2021 , up from 25 % in 2009 . The flows of natural gas transiting through Ukraine have continued so far since the invasion , despite Ukraine itself experiencing supply disruptions and damage to its gas infrastructure .
“ Natural gas consumption this year is expected to fall by close to 6 % in Europe . In Asia , it is expected to grow by 3 % in 2022 , a marked slowdown from growth of 7 % in 2021 . Regions such as the Americas , Africa and the Middle East are expected to be affected less directly by gas market volatility , as they principally rely on domestic gas production . But they are nonetheless being affected by the wider economic impacts of Russia ’ s invasion of Ukraine including rising commodity prices , weaker purchasing power and lower investment due to dented business confidence ,” added the IEA .
Oil and gas
“ European countries are now united in their desire to reduce their dependency on Russian oil & gas . In practice , this will mean more pipelines from North Africa , specifically Algeria , but also potentially Egypt , and significant investment in LNG regasification infrastructure . Germany has already signed a contract for one terminal since the invasion and more terminals will follow , both in Germany and in other states . The amount of oil & gas storage capacity will also increase as an insurance against future supply disruption ; this will not be limited to just Europe ,” said analyst , Frost and Sullivan .
According to analyst , Mordor Intelligence , the oil and gas pipeline market is expected to register a CAGR of more than 6.5 % from 2022
-2027 . The oil and gas market was one of the worst-hit industries during the COVID-19 pandemic . Pipeline projects witnessed delays due to imposed lockdown restrictions in major countries like the United States and India . In a bid to meet rising oil and gas consumption , pipeline capacities are being expanded and new pipeline projects are being commissioned . Moreover , an increase in offshore activities , such as deepwater and ultra-deepwater production and development , is driving the oil and gas pipeline market .
“ Lower oil & gas prices in 2014-2018 negatively impacted total LNG investment . Higher prices will now drive investment higher . U . S . LNG capacity utilisation levels are now above 95 % and investment in new gasification plants is now back on the agenda . Both exporting and importing countries across the Americas , Europe and Asia are now reviewing their LNG strategies ,” added the analyst .
According to Frost and Sullivan , commodity prices may have rallied in the second half of 2021 but this will not stop the trend of oil & gas companies rebranding as energy companies and continuing to invest in the power sector . European-headquartered companies are currently leading the energy transition in terms of technology and initiatives , but 2022 will see companies in other regions making moves to close the gap . Power generation , particularly larger renewable projects , will continue to be the standout area for new investment , it said , but significant volumes of investment will also go into green hydrogen production , battery and home energy storage solutions , electric mobility and grid flexibility services . n
Energy in focus at Hannover Messe
From 30 May to 2 June 2022 , some 2,500 companies displayed their technologies for the factories and energy systems of the future at the Hannover Exhibition Centre , Germany . Under the theme of “ Industrial Transformation ”, they demonstrated how connected production facilities can operate more efficiently and conserve resources , as well as how to generate and transmit energy sustainably .
When it comes to CO₂-neutral production and energy security in Europe , renewable energies and green hydrogen play a key role . Many companies have concrete solutions . For example , Hannover Messe exhibitor , Bosch , created a hydrogen cycle at its Industry 4.0 facility that produces green hydrogen for industrial processes .
Around the current energy supply debate , the topic of hydrogen is gaining further importance at Hannover Messe . In Hannover , more than 200 companies presented solutions for sustainable energy supply based on hydrogen derived from renewable energy sources .
Europe is striving to become climate-neutral by the middle of the century . More and more companies have set ambitious goals and are in the process of completely converting their production and services . Recording the CO₂ footprint across entire supply chains is often the first step towards climate neutrality . Hannover Messe exhibitor , Siemens , has developed software that captures emissions data along the supply chain and combines this with data from the company ’ s own value chain to determine a product ’ s actual carbon footprint .
ISMR June 2022 | sheetmetalplus . com | 27