<article><p class="lead">The European Commission is consulting on changes to EU gas rules to facilitate a two-thirds share of renewable and low-carbon gas by 2050. </p><p>The consultation, which will run until 10 March, is part of a hydrogen and gas markets "decarbonisation" package, a proposal for which is expected by the end of June.</p><p>The commission wants biogas, bio-methane, renewable and decarbonised hydrogen, as well as synthetic methane, to together represent two-thirds of gaseous fuels in the EU's 2050 energy mix. Gas produced with fossil fuels using carbon capture and storage technology would represent the rest. </p><p>Gas produced using fossil fuels at present constitutes 95pc of gaseous fuels consumed in the EU and about 22pc of total EU energy consumption, 20pc of EU power production and 39pc of heat production, the commission said. It projects gaseous fuels to still account for around 20pc of total EU energy consumption in 2050.</p><p>Increased EU demand for renewable and low carbon gases will possibly lead to a "crowding-out" of imported natural gas unless third countries gradually replace exports with renewable and low carbon gases, the commission said.</p><p>Key to the commission's overall strategy will be tweaks to the EU's 2009 gas legislation, codes and gas quality standardisation. This is intended to incentivise the use of renewable and low-carbon gas, as well as make possible a "progressive phase out" of unabated fossil gases.</p><p>The focus in the existing gas directive and regulations on natural gas may hinder switching to renewable and low-carbon gases, blocking or delaying the latter's deployment, the commission said. Rules also do not take account of the distributed production of renewable and low-carbon gases, or help prevent disruptions caused by changing gas quality.</p><p>The commission does not outline specific legal changes but hints at desired outcomes, including boosting the repurposing of existing natural gas pipelines owned by network operators, who often are not allowed themselves to own, operate and finance hydrogen pipelines.</p><p>Specifically for hydrogen, the commission wants revised or new legislation to hamper non-regulated monopolies that could in future prevent new players from entering the market. The commission also aims to settle the question of whether or not gas transmission system operators should be allowed to operate electrolysers. The commission in July last year set out a hydrogen strategy aimed at reaching 40GW of installed electrolyser capacity by 2030.</p><p>The commission is also seeking to improve the regulatory framework to anticipate decentralised gas injections, which could make it easier to trade and access renewable and low-carbon gases. Similarly, LNG terminals should be made fit to receive renewable and low-carbon gases, and grant transparent access.</p><p>Earlier analysis by the commission <a href="https://direct.argusmedia.com/newsandanalysis/article/2141013">indicated</a> that the revised 55pc cut in greenhouse gas (GHG) emissions by 2030 compared with 1990 levels requires a share of renewables of 38-40pc, up from an existing 32pc target for 2030. And gas is expected to contribute to the effort. The 55pc GHG cut would <a href="https://direct.argusmedia.com/newsandanalysis/article/2142172">require</a> a decrease in natural gas by 58-67pc compared with 2015.</p><p class="bylines">By Dafydd ab Iago</p></article>
