ABSTRACT
This chapter explains the differences between the European Union (EU) and United States (US) by exploring some key building blocks of the European gas system. The assessment is made by examining several components of the European natural gas system, namely available and planned infrastructure, implementation of legislation, market trade and long-term contracts, and the role of liquefied natural gas (LNG). A. Cavaliere concluded that gas trade has been hindered by asymmetric implementation of legislative packages aimed at liberalization, but also by a lack of interconnection capacity and the exemption of transit pipelines from regulated third party access. Industry data suggested that in the short-term the center of gravity for LNG trade is increasingly in Asia. The European Commission (EC) has reported an increase in spot-market trade and appears to embrace the infrastructure development.
