Suspending funding for "gas" projects could be detrimental to Eastern Europe - Gas TSO of Ukraine

Due to regional differences, there is no single path toward decarbonisation, while suspending funding for natural gas projects could be damaging to Eastern Europe.

That’s according to Serhiy Makogon, CEO of Gas Transmission System Operator of Ukraine, Ukrinform reports referring to the company press service.

Makogon noted the fact that many international financial organizations, including the World Bank and the EBRD, have ceased financing natural gas projects in favor of renewable energy projects as part of the "green transition."

"In Eastern Europe, in particular in Ukraine, there is a special position on this ‘transition’ as the main sources of electricity generation are nuclear energy (55%) and coal (35%). Gas is used mainly for the needs of the households and will continue to be used this way. In the coming years, gas consumption may even increase, as this way we will compensate for the decrease in coal consumption. And this is not a feature of Ukraine only. The same situation has developed in Poland and other Central and Eastern European countries," Makogon said.

In his opinion, there is no single path toward decarbonisation, and there can't be one, given the regional differences of each country. Makogon expressed hope that the European Commission would amend its approach and resume funding for gas projects for the sake of energy transition.

The head of Gas TSO of Ukraine noted that Ukraine would be exploring the possibilities of integrating approaches with European countries. In particular, these include options for shipping hydrogen and biomethane. However, Makogon adds, it is too early to say that the era of natural gas is over.

Despite promises to reduce greenhouse gas emissions as part of the fight against climate change, many countries intend to produce twice as much fossil fuel by 2030 as they do today.

im