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During the financial crisis, major changes have occurred in the demand and supply of natural gas, which may have repercussions for the pricing of gas and for the position of Russian gas giant Gazrprom in the European market. This will not, however, nullifythe long-term interdependency of the EU and Russian gas markets.

EU countries’ total gas production accounts for about 40% of their total consumption of 480 bn cubic metres; the remainder is covered by imports, primarily from Russia, Norway and Algeria. Future gas consumption is expected to increase at the expense of oil and coal. With North Sea gas production drying up, EU countries’ dependency on imported gas is increasing year by year and is estimated to climb to nearly 80% in 2030. However, thanks to a network of natural gas pipelines coming from three directions, Europe has a geographic advantage over North America and the Far East. In addition, western European coastal regions have an expanding group of facilities for receiving liquefied natural gas (LNG).

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