This week we speak to Akos Losz, an Energy Analyst, in the International Energy Agency Division of Gas, Coal and Power Markets. Akos is also a non-resident fellow at the Center on Global Energy Policy.
In this week's episode, we cover the release of the October issue of The Global Gas Security Review 2020 which has an extraordinary analysis of the Covid-19 impact on the regional and global gas markets. We learn how Ukraine has switched from storing Russian gas to now storing extra EU gas. The impact from the social and economic lock-downs transformed the gas markets and heavily impacted both pipeline and LNG gas shipments. The sector was already weakening going into 2020 and the last six months mark a new era in the turbulent history of the gas sector.
As Akos and I discuss, gas is contractually more independent from other fossil fuels now. It is no longer index to the price of oil or serving just as a replacement for coal. With both larger gas infrastructure projects coming online and the maturity of markets and contracts, gas is seeing a new age. Towards the end of the interview, we delve into the future of biogas and hydrogen. Here we take a look at what is gas and both the short-term and long-term prospects of a more environmentally friendly gas sector. Well, if this is possible.
My short take away from this interview with Akos is that the natural gas market has fundamentally changed over the past ten years. The importance of listening to this interview is to understand both the strong position gas holds in the energy system, but also its precarious position due to market forces. In addition, there is an underlining tension around the role of gas in the future. We just briefly discussed the concept of a 'gas bridge', gas as a transition fuel. And we learn how and why the EU is the world's 'market of last resort' for gas. Hint, it has to do with ample capacity to receive gas and the open market concept.