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The impact of liquefied natural gas and storage on the EU natural gas infrastructure resilience

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  • Sesini, Marzia
  • Giarola, Sara
  • Hawkes, Adam D.

Abstract

As the energy system progresses towards full decarbonization, natural gas could play an important role in it with its relatively low carbon characteristics and its abundant supply. At the core of the paper is a modelling analysis of the European Union (EU) natural gas network resilience in case of short-term supply disruption or unexpected increase in demand. The adopted linear programming model solves for the most cost effective transmission of gas flows, capacity and storage utilization in an interconnected EU gas system. Results presented in the paper show a significant increase in liquefied natural gas (LNG) costs (+40%) when commodity price increases (+40%) and LNG prices decreases (−20%), and an equally significant decline in transport and LNG costs (−30%,-50%) when storage volumes varies (−35%,+35%).The analysis highlights a complementary role between LNG and storage in ensuring a cost-effective response to a natural gas supply shock. It also indicates that LNG alone is inadequate in providing system resilience in case of an emergency in supply, stressing the importance of storage in the gas market and its intrinsic value in the system. The study emphasizes the need to further investigate the reliability and value of gas storage to reinforce energy security in Europe.

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  • Sesini, Marzia & Giarola, Sara & Hawkes, Adam D., 2020. "The impact of liquefied natural gas and storage on the EU natural gas infrastructure resilience," Energy, Elsevier, vol. 209(C).
    • Handle: RePEc:eee:energy:v:209:y:2020:i:c:s0360544220314742
    DOI: 10.1016/j.energy.2020.118367
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    4. Kohnert, Dirk, 2023. "Perspectives d'exportation de GNL et d'hydrogène de l'Afrique subsaharienne vers l'UE [Prospects for LNG and Hydrogen Export from Sub-Saharan Africa to the EU]," MPRA Paper 119420, University Library of Munich, Germany.
    5. Martin Jurkovič & Tomáš Kalina & Ondrej Stopka & Piotr Gorzelanczyk & Borna Abramović, 2021. "Economic Calculation and Operations Research in Terms of LNG Carriage by Water Transport: A Case Study of the Port of Bratislava," Sustainability, MDPI, vol. 13(6), pages 1-25, March.
    6. Zhaoming Yang & Qi Xiang & Yuxuan He & Shiliang Peng & Michael Havbro Faber & Enrico Zio & Lili Zuo & Huai Su & Jinjun Zhang, 2023. "Resilience of Natural Gas Pipeline System: A Review and Outlook," Energies, MDPI, vol. 16(17), pages 1-19, August.
    7. Zhang, Lingge & Yang, Dong & Wu, Shining & Luo, Meifeng, 2023. "Revisiting the pricing benchmarks for Asian LNG — An equilibrium analysis," Energy, Elsevier, vol. 262(PA).
    8. Wei, Qi & Zhou, Peng & Shi, Xunpeng, 2023. "The congestion cost of pipeline networks under third-party access in China's natural gas market," Energy, Elsevier, vol. 284(C).
    9. Sun, Qirun & Wu, Zhi & Ma, Zhoujun & Gu, Wei & Zhang, Xiao-Ping & Lu, Yuping & Liu, Pengxiang, 2022. "Resilience enhancement strategy for multi-energy systems considering multi-stage recovery process and multi-energy coordination," Energy, Elsevier, vol. 241(C).
    10. Sesini, Marzia & Giarola, Sara & Hawkes, Adam D., 2021. "Strategic natural gas storage coordination among EU member states in response to disruption in the trans Austria gas pipeline: A stochastic approach to solidarity," Energy, Elsevier, vol. 235(C).
    11. Ali Shah, Syed Fahad & Qyyum, Muhammad Abdul & Qadeer, Kinza & Lee, Moonyong, 2021. "Sustainable economic growth and export diversification potential for Asian LNG-exporting countries: LNG–petrochemical nexus development using product space model," Energy, Elsevier, vol. 236(C).

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