Natural Gas and LNG

tanker | © GettyImages/MsLightBox

Natural Gas & Liquid Natural Gas (LNG): Energy Transition

What role will natural gas play in reducing emissions? What will influence integration of LNG into German energy markets?

Natural Gas’s global growth position is underpinned by: its advantages over other fossil fuels in emissions abatement, its cost competitiveness, and its complementary (non-disruptive) integration into existing energy infrastructure and smart energy solutions that can balance the fluctuating supply of renewable energy. Its efficiency, storage capabilities, abundant availability, and economic viability legitimizes its “keystone” role in Germany’s Energy Transition.

Gas is widely accepted as best practice in bridging the German Energy Transition. Germany’s continued commitment to a cleaner and renewable-based energy market will require additional gas infrastructure investment. To hedge against ever-tightening emissions regulations and a projected natural gas import gap, the German government has announced its support for investments in LNG propulsion systems and infrastructure.

Investment Environment/Legislative Policy: Securing Supply and Diversifying Demand

  • Germany is buoying LNG fuel demand in trucking and water-transport by offering incentives, which make LNG propulsion-systems more affordable.
  • By requiring transmission system operators (TSO) to foot 90% of the grid connection costs, governmental regulators (June 2019) have made the framework for large-scale LNG investments more feasible; three re-gas terminal currently in the planning phase.
  • EU regulation mandates clearer fuel solutions in transport and cross-border mobility.
  • Germany is a large contributor to globe’s gas sectoral know-how and engineering procurement and construction (EPC) workforce.


David J. Warne David Warne | © GTAI

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