Page 10 - ITAtube Journal 2 2025

Market information
Figure 3: Natural Gas price development as of 18th of July 2025
Source: Trading Economics.com
natural gas (Figure 4). These remarkable
additional costs for LNG are applicable
to such regions without sufficient natural
gas supply by pipelines. Due to this price
disadvantage LNG can only be a short-
term solution to ensure the gas supply
for regions like Europe. Now the US and
Europe concluded a “deal” that Europe will
buy energy for about 750 billion US$ over
the next 3 years. Europe´s total energy
imports from the USA in 2024 has been
about 80 billion US$, LNG 36 million tons
and crude oil at a record of 74,5 million
tons. Tripling current energy flows seems
to be a challenging task, considering the
growth rates of past years. This agreement
will secure the European energy supply
but at high LNG prices. Europe shall in
longer terms consider alternative and
more reasonable energy sources. Natural
gas supply via pipelines shall also be con-
sidered.
In Europe, political institutions have not
agreed to build additional gas pipelines
and the damaged pipelines North Stream
1 and 2 are banned. Other projects are
under experts’ discussion to supply natural
gas to Europe via pipelines at reasonable
cost levels. So far, the political institutions
in Europe are reluctant to consider such
cost saving measures.
The long-term strategy to shift towards
green hydrogen to replace fossil energy
sources such as natural gas, are also ques-
tioned by specialists. Hydrogen produc-
Figure 4: LNG Global Price development 1 year up to June 2025
Source: International Monetary Fund, US Bureau of Labor Statistics
tion via electrolysis in an industrial scale
requires not only masses of clean water,
but also a lot of electrical energy. About 55
MMBtu. The various geopolitical conflicts
MW electrical energy per ton of hydrogen
must be considered. Furthermore, the
as well as speculations about the market
developments specially in the US are
chemical process, the electrolysis, requires
causing such volatility. This may also be
permanent electrical energy 24 hours
seen in light of the announcements of the
over 7 days per week with limited power
network variations. The lifetime of the
new US government stating, “Drill Baby
Drill”. The number of gas rigs only in the
electrolyse stacks is significantly reduced
US have been enlarged by 17% to 117
in case of larger power supply volatility.
since first quarter 2025. Experts expect
Therefore, green hydrogen production
that such enlargement of the gas supply
seems only feasible in regions with steady
will cause a further erosion of the gas
electrical power supply from sun, wind,
water or nuclear sources at reasonable
prices.
cost. In most parts of Europe such con-
LNG consumers are confronted with cost
stant green power supply at reasonable
levels of about 11,5 – 14,5 USD/MMBtu
cost is still hardly to be realized by the
which is about 400% higher than normal
available energy sources. Norway, Sweden10 ITAtube Journal August 2025