The newly issued 2020 report on UGS by CEDIGAZ highlights the key data from the 2020 update of its global UGS database and provides a detailed analysis of 4 markets of utmost importance in balancing global gas markets now and tomorrow: Europe, Ukraine, Russia and China.
2020 UGS HIGHLIGHTS:
Europe: unprecedented high stock volumes in storage
Uncertainty about the outcome of the Russia-Ukraine negotiations after the expiry of the transit contract between Gazprom and Naftogaz at the end of 2019, strong LNG capacity additions and the Covid-19 triggered demand crunch have resulted in record filling levels of European UGSs and have led European shippers to turn to Ukraine to store their excess gas.
The International Association Cedigaz has just released its report “GERMANY National Hydrogen Strategy: Germany aims for leadership in green hydrogen technologies”, which assesses developments and prospects for green hydrogen in Germany and some potential supplying countries.
Report’s key highlights
- The German federal government adopted its National Hydrogen Strategy (NWS) in June 2020, which is seen as a pivotal element for Germany to be climate neutral by 2050. The German government considers that only hydrogen produced on the basis of renewable energies is sustainable in the long term.
CEDIGAZ, the International Information Center on Natural Gas, has just released its « Medium and Long Term Natural Gas and LNG Outlooks 2020 ». Cedigaz Scenario assumes the effective realisation of official energy plans and climate policy targets. It is built upon the implementation of strong energy efficiency programmes and the expansion of low carbon technologies. It highlights that natural gas will play a growing role in the world energy mix to meet both the growing energy demand and climate policy targets. The future expansion of natural gas in the energy mix is driven by the competitiveness and abundance of resources in gas-rich countries (North America, Russia, Middle East… ), which will expand LNG export capacities required to meet the growing gas demand, especially in emerging Asian markets. Despite a post-pandemic recovery assumed post-2021, the Covid-19 pandemic has a meaningful impact on the economy, investments, energy prices and gas demand in the short and medium term. Therefore, the future expansion of gas in the next two decades is conditioned on the timely materialization of investments, especially in the upstream and LNG business, which represents a key challenge in a context of low oil and gas prices.