Natural Gas: An Important Part of the Energy Mix

Growing demand for energy has sparked much discussion in Europe about the ideal mix of fuels that can best satisfy the community's expanding need in the future. The European Union is working to adhere to its year 2020 "20-20-20" target of cutting greenhouse gas emissions by 20 percent from 1990 levels.

Natural gas is the most environmentally friendly fossil fuel with the lowest CO₂ emissions. Gas-fired power plants produce about 50 percent less CO₂ than coal-fired power plants. In a study released in August 2010, Greenpeace argues that natural gas is the only viable bridge to an age of renewable energy.

Natural Gas Aids Climate Change Prevention

Observers and analysts compared costs, feasibility and potential environmental impacts of various energy-mix options – including natural gas, oil, coal, hydropower, nuclear power and renewable resources such as biofuels, wind and solar power. Each of these energy sources has its own practical and economic implications. Oil creates about 25 percent more emissions than gas. And gas is more efficient: the energy equivalent of 55 billion cubic metres (bcm) of gas – the amount to be transported annually by the Nord Stream Pipeline – is almost 50 million tonnes of oil, or another 280 oil tankers crossing the Baltic and North seas each year.

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Coal produces about twice as much CO₂ as natural gas. So-called clean coal technologies do exist, but their costs are prohibitive. Furthermore, Europe is already being forced to increase coal imports to meet its energy demands. Replacing coal with gas for the EU's electricity production would reduce CO₂ emissions by 207 million tonnes per year. This is more than currently emitted by Sweden, Finland, Denmark and the Baltic States combined. If the 55 bcm of gas transported by Nord Stream each year were put into electricity generation instead of coal, annual CO₂ emissions in the EU would decrease by more than 112 million tonnes.

Nuclear power was once thought to be the answer to a world with limited energy supplies, but many questions remain about nuclear safety, security and the disposal of nuclear waste. The energy made available through the Nord Stream Pipeline is the equivalent of 33 new nuclear power plants, costing about 100 billion euros. These plants would produce about 660 tonnes of radioactive waste every year, according to the US Nuclear Energy Institute.

Gas as Transition Technology

Natural gas can be used flexibly in power generation alongside other sources of energy, such as renewables. Gas thus has a role to play as the EU further develops renewable sources of energy, such as wind, solar and tidal power in order to meet its 2020 goals. However, as it will be several years before the EU has established secure alternative energy supplies, Nord Stream will be vital in supplementing the region's growing need for energy.

Since many environmental non-governmental organisations favour gas over other fossil fuels for its low environmental impact, its use is assured for many years to come as a transition technology. The Greenpeace study "Energy [R]evolution – a Sustainable World Energy Outlook" states that the electricity sector will pioneer the phase-out of fossil fuels – by 2070. Over 93 percent of electricity will be produced from renewable energy sources, with remaining gas-fired power plants used for backup power.

While Nord Stream is not the only import gas pipeline planned for Europe, it is currently one of the most advanced as Line 1 is completed, and construction of Line 2 is underway. No other major new pipeline with an annual capacity exceeding 10 bcm is expected to be operating before 2015. Line 2 will be completed in the third quarter of 2012 and capable of transporting gas by the last quarter of the same year. Together, the two pipelines will deliver up to 55 bcm of gas to Europe annually.

Nord Stream will be supplied with gas from the entire Russian gas system. The Yuzhno-Russkoye field, located in Western Siberia (Russia), is one key source supplying Nord Stream. The annual capacity of the Yuzhno-Russkoye field is about 25 billion cubic metres. The exploration is conducted by Severneftegazprom, a joint venture project between Gazprom, E.ON Ruhrgas and Wintershall. By connecting the vast gas reserves in Russia with the European gas grid, Nord Stream will meet the energy demand of more than 26 million households. Additionally, the privately financed Nord Stream project will provide Europe with this much-needed energy supply at no cost to the European taxpayer.