European Utilities & Clean Energy — Regulated Networks Primer series: Part 5: Growth and Capex Outlooks in Gas Networks

Regulated utilities are one of the most dynamic subsectors within European Utilities. Given investor interest, we have launched the Regulated Networks Primer Series - in Part 1 we analysed the attractiveness of regulation across jurisdictions, in Part 2 we focused on valuation, in Part 3 we examined electricity networks capex and growth in Europe, and in Part 4 we turned to the US and Brazil, the key international regulated markets for European Utilities. In this Part 5 we analyse what are the growth prospects of the gas networks across Europe. A structural decline in gas demand: across Europe, electrification, energy efficiency and decarbonisation policies are set to drive a long-term reduction in natural gas consumption, while policymakers increasingly envisage a future role for gas networks through biomethane and renewable hydrogen, though hydrogen deployment is proving slower than anticipated. Gas infrastructure remains essential to energy security and system flexibility; gas-fired