Today natural gas provides 21% of energy that Europe relies on. A secure supply underpins the prosperity and well-being of millions of lives and organisations. In 2026, the UK energy landscape remains fraught, and prices are influenced by ongoing geopolitical instability, which has contributed to a volatile energy market. Across Europe, this volatility is amplified by continued reliance on fossil fuels while renewable capacity continues to scale up.
The broader context of the energy transition provides a further challenge for major energy users, with governments across Europe committed to reaching net zero by 2050 and many organisations working towards their own Science Based Targets initiative (SBTi)-aligned goals. While renewable generation continues to grow rapidly, most energy systems are not yet able to rely exclusively on intermittent sources. As a result, natural gas continues to play an important role during the transition, helping to maintain energy security and system stability while lower-carbon technologies scale up.
The importance of gas security
Recent disruptions to energy supply unsurprisingly prompt concerns with security of supply becoming a greater focus for businesses and country leaders alike.
As Europe continues to diversify its gas sourcing, the world is seeing record levels of international shipping of Liquid Natural Gas (LNG). In an increasingly interconnected energy market, secure and flexible gas supplies remain a critical component of economic stability
The role of gas in our decarbonisation journey
In the 1990’s, many European nations reduce carbon emissions by replacing coal with gas for power generation. Are we now at the next phase of decarbonisation, with the shift from gas to electricity in homes, businesses and industry? Growth of heat pumps, renewable energy, battery storage and electric vehicle charging would certainly suggest so.
Forecasts vary for when gas demand is expected to start to decline but these have been recently pushed back to 2035, falling at a global rate of 0.4% per year to 2050 according to McKinsey.
But this won’t be evenly felt across all industries. Already, some sectors are further ahead in their electrification journey. For example, some new build supermarkets sites plan no gas connection at all. But for many ‘hard-to-abate’ sectors, like industrial organisations or chemical manufacturers, gas currently remains the most viable, or sometimes the only option to balance their needs of security of supply, affordability and sustainability, coined as the ‘Energy Trilemma’.
The future of gas is therefore unlikely to be defined by a simple switch-off. Instead, businesses are likely to follow different pathways depending on their operational requirements, with efficiency improvements, lower-carbon gases and electrification all playing a role.
What does decarbonising gas look like?
Natural gas, which is primarily composed of methane (CH4), produces greenhouse gases when burned – there’s no denying it. But the scale of those emissions depends on two things: How much gas is consumed and where that gas comes from. This means that reducing demand through efficiency measures and increasing the use of lower-carbon gas alternatives can play an important role in helping organisations decarbonise.
For many energy intensive organisations, the use of gas often can’t be avoided to help keep operations running effectively, but managing gas consumption levels in alternative ways to decarbonise is possible. Levelling up energy efficiency standards is an important part of this - more efficient use of energy does not mean doing without these essential uses, it means doing the same with less.
SEFE Energy knows this often starts with helping businesses to get a better understanding of their gas use, followed by implementing a systematic on-going programme of energy improvements and energy-saving investments. These are informed by energy efficiency audits and deep diving on energy data, such as past gas consumption, unearthing opportunities to reduce both energy consumption and operating costs. Energy efficiency demonstrates how it’s possible to tackle all corners of the Trilemma at once; it’s where affordability, sustainability and security of supply find themselves on the same side.
While the goal for all is to decarbonise, if other low-carbon energy sources or electrification is not an option then gas alternatives are available.
Biomethane is a growing renewable alternative and today makes up just 6% of gas consumption in Europe. For comparison about 48% of electricity is from renewable sources. There are new regulations driving biomethane demand and supply – with potential for some businesses to help off-set other carbon reduction costs. For many businesses, biomethane offers a viable low-carbon energy solution without needing to replace any on-site gas equipment, providing an alternative to the investment and preparation needed for electrification or future hydrogen conversion.
The future of gas in the energy mix
Looking ahead, hydrogen is widely expected to take an important role in the future energy mix and could become a viable alternative to natural gas in the next 10-15 years. For those energy intensive sectors this could be transformative, but in the meantime natural gas still has a key role to support the energy transition journey. It does this because it’s reliable, available when needed and can be stored for later use – all crucial when uninterrupted energy use is central for processes.
Renewable power generation plays a critical role in decarbonisation, there’s no doubt about that. However, wind and solar generation remain dependent on the weather, while also challenged by the fact that electricity storage technologies are not yet developed to support at the scale needed for periods of low renewable output. Until these challenges are addressed, gas power stations need to take over when wind and sun are restricted – balancing the power system and providing stability and security of supply when renewables are unavailable. With this in mind, gas remains an important enabler of the transition. Therefore, should natural gas be viewed as an ‘energy transition stabiliser?’
Gas demand is expected to decline as electrification grows, but in the meantime gas will continue to play a critical role in the energy transition for many businesses and industries. The challenge is not simply eliminating gas, but using it more efficiently and sourcing lower-carbon alternatives where possible.