Page 11 - ITAtube Journal 1 2026

Market information
solution for securing supply. The recently
concluded agreement between the US and
Europe foresees energy deliveries worth
approximately USD 750 billion over three
years. In 2024, Europe imported around
USD 80 billion worth of energy products
from the US, including 36 million tons
of LNG and a record 74.5 million tons of
crude oil. Tripling such fl ows will be chal-
lenging, given recent growth rates. While
this agreement strengthens Europe’s
supply security, it comes at the cost of
much higher LNG prices. This is particu-
larly the case if LNG supplies from the
Middle East remain diffi cult.
In the long term, Europe should consider
alternative energy sources, including a
renewed evaluation of cost-eff ective pipe-
line options.
With production currently standing at
around 934 bcm, the US is the world’s
Figure 5: The Top 10 Countries ranked by proven
Gas Reserves as per 2025
Source: TheMerchantsNews.substack.com
largest gas producer and a gas super-
power with growth potential. Around 88%
of production is accounted for by domes-
tic consumption, with the remaining 12%
lifetimes. As a result, economically viable
being exported as LNG.
green hydrogen production is limited to
regions with stable and low-cost renew-
Russia (with ~702 bcm) is the second-larg-
able or nuclear power. In most parts
est gas producer and the largest pipeline
of Europe, such conditions are not yet
exporter. However, sanctions and dis-
achievable. Exceptions include Norway
rupted fl ows have created a structural
and Sweden. Hydrogen transport pipe-
disadvantage.
lines would create additional demand for
It should be noted that Russia has the
alloyed steel tubes.
largest proven gas reserves, at around
Some experts, including those from the
1.688 trillion cubic feet (Tcf), compared to
OECD, advocate producing hydrogen in
the US’s 322.2 Tcf (Figure 5).
regions with abundant, low-cost electric-
Iran and Qatar also hold large reserves.
ity (e.g., the Middle East, North Africa, or
While Qatar is expanding its LNG capacity,
parts of Central America). Energy-intensive
Iran’s reserves are constrained by sanc-
intermediate products - such as DRI/HBI
tions and infrastructure issues. If the war
- could be manufactured near the energy
between the US/Israel and Iran gets out of
source and then transported to industrial
control and further oil and gas production
centers such as in Europe or Asia. This
infrastructure is aff ected, it may further
approach would preserve technological
infl uence LNG availability and prices.
expertise and employment in downstream
metallurgical processes. However, these
The European long-term strategy to
concepts still receive limited political
replace natural gas with green hydrogen
support. For the European metallurgical
is increasingly questioned. Industrial-scale
and tubular industries, the sourcing of
electrolysis requires substantial amounts
DRI/HBI as virgin steel source instead of
of clean water and continuous green elec-
iron ore and coke would be an interesting
trical power - approximately 55 MW per
economical and logistical alternative.
ton of hydrogen - the process is sensitive
to fl uctuations in electricity supply, which
Since our last report in December 2025,
signifi cantly reduces electrolyze stack
we have learned that the presented fi guresITAtube Journal April 2026 11