Page 11 - ITAtube Journal 3 2025

Market information
Figure 6: LNG Global Price development compared to Natural Gas
1 year up to November 2025
Source: S&P Platts, ICE, CME
concluded agreement between the U.S.
and Europe foresees energy deliveries
worth about USD 750 billion over three
years. In 2024, Europe imported roughly
USD 80 billion in energy products from
the U.S., including 36 million tons of LNG
and a record 74.5 million tons of crude
oil. Tripling such flows will be challenging,
given recent growth rates. Although this
agreement strengthens Europe’s supply
security, it comes at elevated LNG prices.
In the long term, Europe should consider
alternative energy sources, including
renewed evaluation of cost-effective pipe-
line options.
Political institutions in Europe have so
far rejected additional pipeline projects,
and the damaged Nord Stream 1 and 2
lines remain inactive. Alternative projects
are under expert review, but political
reluctance persists, despite potential cost
advantages.
The long-term strategy to replace natural
gas with green hydrogen is also increas-
ingly questioned. Industrial-scale electrol-
ysis requires substantial amounts of clean
water and continuous electrical power -
approximately 55 MW per ton of hydrogen
- and the process is sensitive to fluctua-
tions in electricity supply, which signifi-
cantly reduces electrolyser stack lifetimes.
As a result, economically viable green
hydrogen production is limited to regions
with stable and low-cost renewable or
nuclear power. In most parts of Europe,
such conditions are not yet achievable.
Exceptions include Norway and Sweden.
Figure 7: Energy Mix of Sweden in 2024
Source: lowcarbonpower.org
Hydrogen transport pipelines would create
additional demand for alloyed steel tubes.
Sweden, with reliable hydro and nuclear
baseload capacity, is uniquely positioned
to produce green energy at competitive
cost levels (Figure 7).
Some experts, including those from the
OECD, advocate producing hydrogen in
regions with abundant, low-cost electric-
ity (e.g., the Middle East, North Africa, or
parts of Central America). Energy-inten-
sive intermediate products - such as DRI
- could be manufactured near the energy
source and then transported to industrial
centers such as in Europe or Asia. This
approach would preserve technologicalITAtube Journal December 2025 11