Europe ditching Russia gas could price out emerging Asia buyers, spur renewables

(Eco Business, 10 Mar 2022) The Ukraine conflict will test the resilience of economies transitioning away from fossil fuels. Asia is likely to feel the sharp end of the scrum for coal and gas as Europe shuns Russian supply.

Asia’s natural gas ambitions could take a hit following the European Union’s (EU) decision to cut its reliance on Russian gas, potentially causing global gas prices to further climb as the bloc looks to source energy elsewhere, analysts said.

The move may serve a financial blow to emerging economies in Asia, which are fast building up natural gas capacity for baseload energy generation. Consumers will also feel the pinch of higher electricity prices. The resultant inflation may make it harder for markets to advance clean energy, even as renewables present themselves favourably amid the crisis

The EU, which opposes Russia’s invasion of Ukraine, wants to cut dependency on natural gas imports from the energy major by two-thirds this year, and completely wean off the petrostate before 2030 it said on Tuesday. Russia currently provides about 45 per cent of EU’s total gas imports.

By 2021 figures, the shortfall this year could be around 100 billion cubic metres of natural gas, which the EU said would be partly compensated through higher liquefied natural gas (LNG) imports from other parts of the world setting up a direct contest with Asia for the commodity.

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Eco Business, 10 Mar 2022: Europe ditching Russia gas could price out emerging Asia buyers, spur renewables