Gas buyers lagging behind on implementing decarbonisation strategies

The Energy Insights European Gas Buyers Survey found that 90 per cent of gas buyers aim for half their energy portfolio to reach net zero by 2040, yet some are reverting to coal and 42 per cent have not finalised or begun executing their net zero plans.

Green hydrogen and biogas are viewed as potential alternatives to natural gas for 62 per cent and 60 per cent of buyers respectively. With major suppliers recently involved in M&A activity to expand their positions in biogas and biomethane, this creates an opening for gas and LNG suppliers to partner with buyers in achieving decarbonisation targets. Over a quarter (27 per cent) also see certified lower-carbon natural gas as a viable alternative, revealing latent demand for suppliers to bring back carbon-neutral LNG cargoes using offsets.

Over three-quarters of buyers are in favour of using partnerships with integrated-energy suppliers to support the energy transition, which could lead to suppliers partnering with buyers to understand and implement decarbonisation plans. With demand for new energy set to outstrip supply and few market mechanisms in the space, buyers’ access to new energy will be increasingly reliant on relationships with suppliers.