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Decarbonization Could Boost Europe’s Midstream Operators

Consumption of natural gas has slowed in Europe, hurting revenue. That may change as sectors go green.

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Decarbonization Could Boost Europe’s Midstream Operators
Revenue growth has slowed and declined for Europe’s top transmission system operators
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Europe’s natural gas midstream operators are facing a decline in revenue but also some new opportunities as economies reduce their carbon output. Consumption of natural gas in Europe declined by 10% between 2008 and 2017, partly due to the rise of renewable energy sources. This decline hampered revenue growth, which fell from a 3.8% compound annual growth rate in 2008–2013 to a drop of 3.4% in 2015–2017. Soon, however, demand for new natural gas infrastructure could rise. For example, Europe’s Natural Gas Vehicle Association forecasts that 10% of passenger cars, 20%–25% of trucks and 30% of buses will run on natural gas by 2030, creating the need for more infrastructure to bring natural gas to those drivers.

Andrea Isabella and Roberto Nava are partners with Bain & Company in Milan, working with the Global Energy & Natural Resources practice.

Read the Bain Brief

Europe’s Midstream Infrastructure Enters a Greener Era

The energy transition will create new opportunities for transmission system operators.

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