“A new US government is likely going to tighten up on regulations for CO2 emissions, which will have a big influence on the balance between demand and supply of gas,” write analysts at global business consultancy Booze & Company. They assert that the extra costs involved with stricter regulation of CO2 regulation is bound to dramatically increase demand for natural gas in countries around the Atlantic Basin. With dramatic impacts on the world´s rather localized gas markets.
As a result, the Europeans might need more access to gas via pipelines, especially Russian ones. Russia already is Europe’s largest gas supplier. European energy companies and governments are definitely going to be faced with new challenges to secure their access to gas in the mid term, the consultancy believes.
All this is, of course, great news for the gas exporting countries. A better integrated and more global gas market offers great opportunities for gas exporting countries. The market will however get more complex and this requires better strategies and planning. The increase in complexity could lead to the acceleration of large gas exporting countries of their plans to launch the Gas Exporting Countries (GECF), an informal club of 15 countries similar to the Oil Exporting And Producing Countries (OPEC).