Europe looks for supply diversity in the Caspian, Persian Gulf

Declining indigenous gas production is the biggest issue facing the European natural gas industry because it is leading to an increased reliance by consumers on supplies from geographically remote producers.Of the world’s gas resources, 40% lies in the Caspian and Persian Gulf states, thousands of miles from 20% of the world’s gas consumers in Europe (Fig. 1). The questions are: How much of this gas will be brought to the European market, in what forms, and by which routes? Click here to enlarge imageDespite the rise of LNG, the majority of the world’s gas consumption (93.5% in 2003) is satisfied by connecting consumers with natural gas resources by pipelines (Fig. 2). ...

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