According to experts at Morgan Stanley, this is a serious problem because “Europe needs $2.2 billion in investment so as to replace the out-dated infrastructure and to meet the objectives for reducing coal emissions.”
For them, this supports the thesis that “the system is not sustainable” and we are facing a “turning point.” In a new model Eon and RWE would be the most beneficiated.
Regarding the global natural gas demand, it will increase at a slower rate than previously expected through 2019 amid weaker economic growth and competition from coal and renewables, according to the International Energy Agency.
Executive director of the IEA Maria van der Hoeven said that North America’s liquefied natural gas (LNG) export advocates may be getting a little ahead of themselves.
“Recent talk of plentiful LNG being available from the U.S. shale boom is simplistic,” she said during a webcast. “The necessary export facilities are not yet in place, and we must remember that gas is an expensive fuel to transport and is sold into a global market dominated by current high prices in Asia.”