Regulators' FROG study foresees a future for gas
6 March 2018
• Gas has the potential to contribute to decarbonisation
• Gas demand and decarbonised gas policy impact the development of gas infrastructure
• Future Role of Gas (FROG) study to be presented in a public workshop (24 April)
The Future Role of Gas (FROG) study, published today by the Council of European Energy Regulators (CEER), evaluates the future role of gas (from a commodity and infrastructure perspective) and the regulatory implications.
Gas has the potential to contribute to decarbonisation
The FROG study assesses the magnitude of future natural gas demand in 2040 for the EU-28 under three demand scenarios (low, average and high). In all cases, gas may play an important role also considering green gases - such as biomethane, hydrogen, synthetic methane.
Key findings of the FROG study:
- Natural gas remains competitive in the residential/heating sector and it may become important in the transportation sector as well with LNG and Compressed Natural Gas (CNG) used as fuels.
- Gas has the potential to contribute to the EU’s decarbonisation agenda both as back-up for renewables and also potentially in terms of renewable gases which can be accommodated in the existing infrastructures. For CEER, decarbonisation should be at least-cost.
Gas demand and decarbonised gas policy impacts the development of gas infrastructure
The future gas demand affects natural gas infrastructure development. High demand requires an extension or reinforcement of gas network whereas low gas demand risks stranded assets. Effective forward-looking regulation requires policy clarity on the future role of (decarbonised) gas and its underlying infrastructure.
What’s next? - FROG study to be presented in a public workshop (24 April)
CEER will hold a public workshop on 24 April 2018 to discuss the findings of the FROG study. The draft agenda and registration of the FROG launch event can be found here.
In 2018, CEER will continue to work on a CEER vision on the future role of gas from a regulatory perspective. The analysis will build not only on the FROG study but also other relevant studies in this field.
We will also continue to work on a range of wholesale and retail gas issues including the interaction and synergies between gas and electricity sector.
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