The energy crisis and the war in Ukraine have fundamentally rearranged the gas market in Europe and turned infrastructure from an “invisible“ background into a key factor for security. Against this background, new geopolitical risks – including tensions in the Middle East – once again raise the question of how prepared the European Union is. Boyana Achovski, Chairwoman of ATMIX and former Secretary General of Gas Infrastructure Europe, spoke to FACT.
- Ms. Achovski, you headed Gas Infrastructure Europe during a period of enormous turmoil for the energy market. How has the role of gas infrastructure in Europe changed after the energy crisis and geopolitical tensions?
- The last few years have fundamentally changed the way Europe views its energy infrastructure. For a long time, gas infrastructure was seen as a relatively "invisible" part of the energy system, something that simply functions in the background. However, the energy crisis has shown that it is actually a strategic asset.
Before the war in Ukraine, around 40% of the EU's gas imports came from Russia. In an extremely short time, this dependency had to be replaced.
This was a huge challenge, but Europe managed to adapt thanks to a combination of factors - diversification of supplies, a rapid increase in LNG imports, better connectivity between countries and a more efficient use of gas storage. After 2022, it became clear that infrastructure is a strategic asset: without LNG terminals, interconnectors and gas storage, Europe would not have been able to replace Russian gas at such a speed. GIE's transparency platforms - AGSI+ for storage and ALSI for LNG - have also become a tool for market confidence because they show in almost real time what is happening in the system. This has shown something very important: infrastructure is not just pipelines and terminals. It is the system that makes energy security possible. When you have a well-connected and flexible infrastructure, you can react much faster to crises and redirect supplies. This is what allowed Europe to get through one of the worst energy crises in its modern history.
- Is Europe ready to respond to crises? First there was the war in Ukraine, now there is the conflict in Iran. The price of oil is rising, so is the price of gas. How do we cope?
- Europe is much better prepared today than it was three years ago. The crisis forced European countries to build a new model of energy security management.
For example, mandatory targets for filling gas storage facilities were introduced. Today they play a key role in market stability. After the end of the winter season, the levels in European storage facilities are around 55-60%, which is normal for this time of year and provides a good basis for preparing for the next winter.
At the same time, Europe has significantly increased the role of liquefied natural gas. LNG today accounts for approximately one third of the continent's gas supplies, with the United States becoming the largest supplier of liquefied natural gas to the European market. Of course, when there are geopolitical tensions, especially in regions linked to global energy trade, this inevitably affects prices. But greater diversification of supplies and better infrastructure give Europe much more flexibility.
- Create a military conflict to confuse the world. Is this the agenda of international politics at the moment. The strong dictate the rules of the game?
- Energy has always been part of geopolitics. This is not new. What is new is that Europe has become much more aware of the risks of excessive dependence on a single supplier. Recent years have shown that energy security cannot be seen as just an economic issue. It is also a strategic issue. That is why the European Union has started to invest much more in diversification, infrastructure and integration of energy markets. This does not mean that geopolitics will disappear from energy. But it does mean that Europe is striving to build a system that is more resilient to external shocks.
- The war in Iran comes at a time when gas storage facilities in Europe are empty after the winter. In this situation, what does expensive gas mean for the EU?
- After each winter, gas storage levels naturally drop, because that is when the reserves are used. This is a normal part of the functioning of the system. After the winter season, levels drop significantly and the injection period begins.
However, higher gas prices have a real impact on the economy. They affect industry, the electricity market and the competitiveness of the European economy.
It should be borne in mind that the European gas market is already strongly linked to the global LNG market. This means that prices are influenced not only by European factors, but also by demand in Asia, global supplies and geopolitical events.
- At the same time, Russia is rubbing its hands because there is no gas in the EU, but there is a need. Is it economics or geopolitics?
- Both. Energy has never been a purely economic topic, but after 2022 this is very clear. Russia is no longer the dominant supplier it was, but it still holds approximately 10-13% of EU gas imports, so any market shock gives it space to remind itself of itself. The big difference is that Europe is already in the process of irreversible diversification. Today, the main suppliers of gas to Europe are Norway, the United States through LNG, Qatar, Algeria and Azerbaijan.
- You often say that gas infrastructure can be the “backbone of the future energy system“. How does this fit in with the EU's ambition for decarbonisation?
- Gas infrastructure can also play a key role in the energy transition. The reason is that it can be used not only for natural gas, but also for other energy carriers, such as biomethane, syngas or hydrogen.
Europe is moving towards an integrated energy system model, in which electricity, gases and new energy carriers work together.
In this context, existing infrastructure can help accelerate the transition because it allows the use of already built networks. When I say “backbone“, I do not mean that the future is fossil. I mean that the energy transition will not happen without networks, terminals, gas storage and transport of molecules. The European Network of Transmission System Operators for Gas (ENTSOG) already shows in its ten-year development plan (TYNDP 2024) that over 200 out of 326 investments are hydrogen projects, and around 80% of new investments in the cycle are hydrogen-related; GIE meanwhile also points to 100 hydrogen and 17 CO₂ projects in the new European package for cross-border energy infrastructure. This is a very clear sign that infrastructure is not disappearing - it is being reconfigured.
- Hydrogen is increasingly mentioned in the European energy strategy. Is it realistic to adapt the existing gas infrastructure for hydrogen?
- Yes, and this is one of the main topics in the European energy strategy. Analyses show that a significant part of the existing gas infrastructure can be adapted for hydrogen transport, but not everywhere and not overnight. That is why the European associations European Network of Hydrogen Network Operators (ENNOH) and the European Network of Transmission System Operators for Gas (ENTSOG) are already working on criteria for adapting existing gas infrastructure for hydrogen transport, instead of Europe starting from scratch. First we will see regional corridors and industrial clusters, and then a wider network. Hydrogen will not come as a slogan, but as a coherent infrastructure economy.
- You have experience in both European institutions and the energy business. Where do you see the biggest challenge - in political decisions or in real infrastructure and investments?.- The real challenge is in the gap between political speed and infrastructure speed. Politics loves fast goals, but infrastructure works with permits, capital, engineering, public procedures and a horizon of decades. This is also visible in the current debate about a possible cap on the price of gas - politically this sounds tempting, but in terms of the market it is much more complicated, because LNG cargoes (liquefied natural gas cargoes) do not follow political desires, but economic logic. This is precisely why Europe needs to think less in terms of impulses and more in terms of systems.
- Europe is striving for energy independence and diversification of supplies. Which infrastructure projects do you think are most important for the energy security of the region, including for Southeastern Europe?
- Southeastern Europe is a strategic region because it has long been highly dependent on Russian gas. However, in recent years, a number of projects have been implemented to improve connectivity between countries.
An example for the region is the so-called Vertical Gas Corridor. This is a concept that connects the entry points in Greece, including the LNG infrastructure, with Bulgaria, Romania, Hungary and Slovakia, creating a new north-south supply route.
This corridor allows gas from the Mediterranean and Caspian regions to reach Central Europe and significantly increases the energy security of the region.
- If we were to look towards 2030-2050, what would the European energy system look like - what would be the balance between gas, hydrogen, renewables and new technologies?
- It will not be “either-or“, but “both-and”. We will have much more renewable energy and electrification, but we will also need flexibility - from seasonal balancing, from energy carriers for industry and from new infrastructure, including for hydrogen and CO₂. Gas infrastructure will not disappear, but its role will change. It will be used increasingly for low-carbon gases and for balancing the system. The future energy system will not be built around a single technology. It will be integrated - different solutions that work together to ensure security, affordability and sustainability. The most realistic scenario is a system in which electricity, gas, hydrogen, storage and industry are connected and work as a whole. And here comes the next big topic - decarbonization is already deeply embedded in industrial production.
This is a conversation that is only going to become more important - including for companies like ATMIX. The construction industry is currently undergoing a fundamental transformation driven by the need to reduce carbon emissions and adapt to the new European regulations for sustainable construction. In this context, our focus is on the future of concrete, with an emphasis on the development and implementation of solutions with a reduced carbon footprint. This includes the implementation of innovative technologies, the use of alternative raw materials and the optimization of production processes. In this way, we contribute to the creation of a more sustainable and environmentally responsible built environment.
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Bojana Achovski is the former Secretary General of Gas Infrastructure Europe (GIE), where she worked for years at the heart of the European energy debate on topics such as security of supply, gas infrastructure, LNG, gas storage and energy transition. Today, she leads ATMIX and works on topics related to industrial transformation, decarbonization and sustainable development. This combination gives her both a European and an industrial perspective on the next stage of the transition - the moment when energy policy must be translated into real economy, infrastructure and production.