The Role of Natural Gas in the Energy Transition

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The chapter examines the role and prospects of natural gas as an energy source during the fourth energy transition, and also analyzes the conflict between the concepts of a “just energy transition” and “energy security”, which have worsened due to the ongoing “gas war” between Europe and Russia. Attention is drawn to the importance of the role of natural gas as a “transitional fuel” and as a source of maneuverable energy in the development of renewable energy sources and the reduction of anthropogenic greenhouse gas emissions. Expected significant and at the same time different impact of the global energy crises caused by the war in Ukraine on the prospects of pipeline natural gas and liquified natural gas (LNG) in the energy balances of the countries of the European Union (EU) (one of the world’s largest importers of natural gas) and the Eurasian Economic Union (EAEU) (one of the world’s largest exporters of natural gas) is noted. In general, this chapter aims to analyze as a case study the contrasting legal pathways of the EU and EAEU to reform and design their gas markets and the effects of such reforms on the role of natural gas in the energy transition in the respective regions of the world, especially in the context of the global energy crisis of 2022 caused by the war in Ukraine. The author of this chapter also draws attention to the emerging trend of an increased role for the State and, accordingly, public law in regulation of gas markets in many countries of the world, in particular in regulating natural gas prices. For instance, as of September 2022 due to the unprecedented shortage of natural gas and rapid increase in gas prices, even the countries of the EU are now considering the introduction of an EU-wide gas price cap, which is obviously an obvious offset from the policy of liberalization of gas markets carried out in the EU so far, including the liberalization of gas prices.