A wave of new liquefied natural gas supply could reverse a decade of European industrial decline, cutting annual energy costs by €39bn by 2032 and delivering cumulative savings of €180bn, equivalent to 1% of EU’s current GDP according to Wood Mackenzie’s latest report.
The report by the analyst group, “The LNG lifeline: Will cheaper global gas resuscitate European industry?”, reveals that the prize for the European economy could be substantial.
European industrial natural gas and power demand has declined by 21% and 4%, respectively since 2021. But Europe’s sluggish economy could get a material lift from lower energy costs.
Based on Wood Mackenzie’s industrial price forecasts and assuming government taxes remain broadly similar, projected cumulative savings are equivalent to 19% of today’s total gas and electricity expenditure. Savings would provide relief to energy-intensive industries battered by record energy prices, supply-chain disruptions and ambitious decarbonisation targets.
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