VIS was commissioned by Stantec to implement an EU-funded study aimed at evaluating the potential of Liquefied Natural Gas (LNG) in the Eastern Partnership (EaP) countries (Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine). This key study was launched by the EC under the framework of the EaP LNG Network Group established by the European Commission and EaP governments.
The study aimed to assess the structure of gas markets, prospects for LNG, and the competitiveness of LNG across multiple end-use segments. VIS identified potentially viable options for LNG market supply in each country (on a case by case basis, pipeline imports of re-gasified gas from EU LNG terminals, and/or development of own LNG terminals, and/or development of small scale liquefication, and/or supply of LNG through virtual pipelines).
The competitiveness of each supply option was analyzed by assessing the costs in the supply chain from supply to end-customers. To identify economically viable options, high level Cost-Benefit analyses were performed for selected options, and prerequisites and key success factors were identified for all viable options. Additionally, VIS formulated proposals for policies and actions that could be taken by EaP countries and the EC to develop LNG markets. Field missions were conducted to all EaP countries, as well as to the Klaipeda and Swinoujscie LNG terminals in Poland and Lithuania. During missions, in addition to data collection, VIS undertook extensive stakeholder consultations and provided capacity building on LNG market dynamics and EU best practices.
VIS’s work contributed to tailored recommendations on infrastructure, regulatory, and fiscal measures to advance LNG development in the region. The study results were presented during four international workshops of the EaP LNG Network Group.