MET Group strongly believes in natural gas as a transition fuel. Gas will continue to play a crucial role in the energy mix for the foreseeable future – it will remain as an essential energy source in Europe for the next 20 to 25 years. What are the reasons behind this?
1. Providing flexibility
Renewable energy sources are weather-dependent, so the growing amount of solar and wind energy being installed into the electrical grid makes matching the supply and demand of energy more challenging. Gas-fired power plants can quickly be started up and shut down to match precisely the real-time fluctuations in electricity demand, thus providing a reliable backup for the grid.
Before a new technology comes along – in addition to battery energy storage systems (BESS) – that is able to store electricity generated from renewable sources in large quantities in the long term, and until the grid is fully prepared to receive it, gas-fired power generation will remain the main provider of the necessary flexibility.
Technologies like CCGT (combined cycle gas turbine) and CHP (combined heat and power) plants, or other asset types such as natural gas storages, deliver a viable solution to boost the flexibility of the entire energy market. MET is the majority owner of Hungary’s largest CCGT plant, the Dunamenti Power Station. COGEN Energía España, also belonging to MET Group, is an integrated operator in Spain’s CHP industry.
2. Lower carbon footprint
Natural gas is widely acknowledged as a significantly cleaner-burning fossil fuel in comparison to coal and oil. When combusted for electricity generation, natural gas produces roughly half the CO2 emissions compared to coal.
Beyond its CO2 advantages, natural gas combustion also results in considerably fewer emissions of other harmful air pollutants, thereby contributing to improved air quality. Natural gas combustion generates very low particulate emissions into the atmosphere.
3. High availability
Natural gas is characterized by its global abundance and relative affordability, providing significant economic advantages. Natural gas is widely available in large volumes and is generally more affordable than many alternative fuels. This accessibility makes it a practical option for meeting growing energy demands, while working towards long-term decarbonization goals.
The versatility of natural gas allows for its widespread application and major role in various sectors of the global economy. In addition to power generation, natural gas is broadly used for heating and many industrial processes.
4. Developed infrastructure
Many countries already have extensive infrastructure for natural gas extraction, processing, transportation, storage, and distribution. MET Group owns and operates gas storage facilities in Germany (in Etzel, Reckrod, and Gronau-Epe).
It makes sense to use the existing infrastructure as it allows for a cost-effective transition away from the more polluting fossil fuels. Going forward, this infrastructure can also be adapted for low-carbon gases like hydrogen or biomethane. While the role of LNG will grow globally, the projects currently underway are expected to substantially cover Europe’s medium-term import needs.
The comprehensive global infrastructure includes over one million kilometres of operational gas pipelines distributed across more than 160 countries. This expansive infrastructure facilitates the efficient delivery of natural gas from production regions to demand centres. For long-distance transport, LNG (liquefied natural gas) provides the most practical solution.
LNG will continue to play a crucial role in securing Europe’s energy supply. MET Group has one of the most diversified LNG import structures from a geographical perspective in Europe, with long-term regasification capacity in Germany, Croatia and Spain. MET has imported into 9 different countries across Europe and, in 2024, has reached a partnership agreement with Celsius to build MET’s first LNG vessel (scheduled to be delivered in 2027).
5. Supporting the energy transition
Its designation as a “transition fuel” is based on its immediate advantages, including significantly lower CO2 emissions, substantial reductions in air pollutants, and a critical role in maintaining grid stability by complementing weather-dependent renewable energy sources. Furthermore, its abundance, affordability, and extensive existing infrastructure offer economic and energy security benefits.
Natural gas has emerged as a key element in the global energy transition, in a shift towards a low-carbon energy system. Gas facilitates the necessary phase-out of more carbon-intensive fossil fuels like coal, whilst simultaneously supporting the increasing integration of renewable energy sources.
MET Group has extensive experience operating renewable and flexible energy assets, thus providing the widest possible support to the energy transition. With its business structure ranging from gas & LNG trading, power trading, selling natural gas and electricity to customers across 20 countries, investments into gas storage, CCGTs, CHP and battery energy storage systems, to its business activities in the sectors of solar energy and onshore wind, MET is perfectly positioned as an “energy transition company”.
6. Low-carbon gases: blue hydrogen, green gas
Low-carbon fuels produce fewer greenhouse gas emissions than traditional fossil fuels, which makes them a crucial component of transitioning to a low-carbon economy. Blue hydrogen, for example, is produced from natural gas with a process called “steam methane reforming”, where natural gas is mixed with very hot steam and a catalyst. Green gas is another vital player in the energy transition. It refers to any type of gas that is produced from renewable sources (organic materials, renewable electricity etc.) instead of fossil fuels – that includes biogas, biomethane, and green hydrogen.
Green hydrogen, however, is currently more expensive to produce than the alternatives and faces a challenging business case due to its high production costs, limited infrastructure, and uncertain demand. Consequently, stakeholders and regulators should provide stronger support to blue or grey hydrogen, as green hydrogen will have a hard time replacing natural gas in the foreseeable future.