The Impact of Hydrogen Technology on Long-Term Natural Gas Supply Contracts

Christopher Goncalves, Colm Gibson, and Anthony Melling look at the potential impact of the likely growth in the use of hydrogen gas as a fuel and how this may impact both pipeline and LNG long-term gas contracts.

The world seems to be coming to grips with the idea that we are all passengers on “spaceship earth” and that we need to act together to help reduce greenhouse gas emissions into our atmosphere. This has led to an ever-increasing move towards “green” power generation technologies, commonly in the form of wind and solar power. As these technologies have matured, the intermittency of green electricity supply has materialised as a growing problem: electricity arrives when the wind blows and/or the sun shines, and there’s either too much or too little supply. In the search for a flexible supply, therefore, large-scale hydrogen production is increasingly being promoted.

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