We study the evolution of the global natural gas market in relation to the recent European energy crisis. The objective is to analyse changes in global natural gas flows and highlight the role of liquefied natural gas (LNG) in the new geography of global energy markets. Furthermore, the paper summarizes consumption and storage trends in Europe and Italy, as well as the main policy responses to counter the effects of the crisis.
In 2022, pipeline imports of natural gas from Russia to Europe were reduced by 80 billion cubic meters, about three quarters of which were offset by the simultaneous redirection of global LNG flows from Asian destinations to Europe. Due to rising prices, European natural gas consumption fell by 13 percent from the previous year. In 2022, in order to counteract the effects of the crisis, euro-area governments adopted fiscal measures totalling about 2 percent of the area's GDP.
