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Europe Striving Towards Diversifying Natural Gas Sources

by Rajesh Gunnam on Jun 20, 2011

Natural gas is an important constituent of European energy mix. It represents one–third of the total energy consumption in the region. Natural gas in Europe is used for various industrial, commercial and residential purposes. Low carbon emissions and cost competitiveness associated with natural gas are the factors driving the preference towards natural gas usage in the region.

Russian Federation (Russia) plays a significant role in European natural gas imports. It supplies about
29% of the total natural gas imports to Europe. This over-dependence on Russian gas supplies makes the
region vulnerable to gas supply disruptions as happened during Russia-Ukraine gas price dispute. While
Europe has been able to reduce the share of Russia in its natural gas imports over the last few years, the
importance of Russia in its natural gas market is expected to continue in the near future.

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