U.S. and European cooperation essential on gas and LNG

Marcelino Oreja, CEO, Enagás, on the market for gas and LNG and the opportunities presented by energy transition as both a back-up to renewables and the source of power where electrification is not possible

What are the greatest opportunities for the gas and LNG industry in the coming years?

The energy transition process towards decarbonisation of the economy is a great opportunity for the gas sector and for LNG in particular.

Natural gas will keep playing a crucial role in the energy mix: as a back-up to renewables in the power to gas generation and as the only possible technology in sectors that cannot be electrified. 

Furthermore, in the mobility sector, for example, natural gas as fuel has great potential and its role for improving the air quality is questionless. Within the maritime sector it is the only down-to earth alternative nowadays.

And what are the greatest challenges?

The opportunities mentioned above are, at the same time, the challenges ahead for the energy sector. Being able to adapt and respond to the needs that decarbonisation raises will mean an unprecented transformation of the sector.  At the same time, companies have to adapt to another transformation, the digital one, which goes beyond embodying new technologies. It demands a change in all spheres: organisation, resources, processes and, above all, the culture of the companies.

How can Europe and the USA best cooperate in order to ensure the future of the sector in the wake of competition from other sources of energy?

The cooperation between the U.S. and Europe will continue to be essential. For the U.S., currently an important gas exporter, Europe is now a key market. The natural gas that the U.S. exports is being destined, among other countries, for Spain, and that is very positive, both for the U.S., as it can make use of strong LNG infrastructures available in a strategic location for its operations; and for Spain, because the U.S. is a new supply country with an impact on the liquidity of the market and on price competitiveness at international level.

Enagás was awarded a top rating for work/life balance this year. How important is this issue to the industry, especially when it comes to attracting new talent?

Reconciling the personal and professional lives of employees is a key element in guaranteeing equal opportunities and in strengthening the well-being and motivation among professionals. Furthermore, it is a key aspect for attracting and retaining talent. Enagás offers more than 110 measures to facilitate the work/life balance of personal and professional life, a commitment that has been valued by different indexes, such as Top Employers, which certifies the company as one of the best to work for.

You will be speaking on sustainable supplies for Latin America during a Global Business Leaders’ Panel. What particular opportunities and challenges does this region face?

Global demand for natural gas is expected to grow by an average of two per cent per year over the period 2017-2023, according to IHS Markit and Energy Information Administration data. These perspectives make it necessary for Latin America to evaluate the need for new infrastructure developments in some specific countries, such as pipelines or LNG terminals, which will be an important asset for the future, especially in the current decarbonisation process.

As we operate in a global market, the energy transition is a challenge. In this context, Latin America has the opportunity to boost innovation in two key fields: transport, especially maritime, and non-electric renewable energies, such as biogas, biomethane and hydrogen.

What do you think will be the main issues to be addressed at this year’s Gastech?

Gastech is always a place where global leaders and senior leadership teams gather to discuss policies and the future of the gas, LNG and energy industries. The main challangues, such as innovation, digital transformation or the energy transition, will surely be some of the issues in the 2019 edition.

How important is the event to the global industry?

Gastech is the world’s benchmark event in the gas sector. It brings together a multitude of international experts and influential figures, as it is an opportunity to analyse and discuss the global issues and challenges of the sector and to improve our knowledge on the alternatives and advances that are being developed.

Gastech is also a showcase, which allows us to put out consistently clear and convincing messages in order to consolidate our position in the market.

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Marcelino Oreja will be speaking at Gastech on September 17 at 11:15 as part of the Global Business Leaders’ Panel “Natural Gas and Latin America: Creating a sustainable gas agenda for the region”