Yesterday, at the Greek-British Symposium in London, Paddy Blewer, Energean’s Head of Communications & CSR took part in a discussion forum considering the energy security challenges faced by the EU, Greece and the UK in the light of the Russian invasion of Ukraine.
The distinguished panel considered the effects on European energy security, industrial capacity and socioeconomic dynamics; not just because of the results of the Russian – Ukrainian war, but as a result of over a decade of EU and (ex in the case of UK) member state energy transition, environmental and sustainability policy.
It is against this background that Energean’s core argument on the panel was that the EU and its member states need to make a series of strategic policy decisions.
The vast majority of EU energy and environmental policy was written with the assumption that the EU would be able to take as much gas as Gazprom, Equinor & Sonatrach could deliver, until the necessary technological, engineering and investment challenges have been overcome and there could be a massive reduction in molecular energy consumption. This assumption follows on from the earlier European decision that domestic E&P should be cutback in favour of importing molecular energy, to demonstrate a commitment to fight climate change.
We argue that both that assumption and previous decision should at least be reconsidered. 150 bcm+ per year from Russia is now drastically reduced and whilst there is a lot more Russian LNG coming into Europe, the pipelines that used to supply 30-45% of European gas consumption will never return to their previous capacity – creating a very clear energy security risk and consequent socioeconomic challenge.