EU possibly to encounter gas deficiency
Date
11/10/2024 7:04:42 AM
(MENAFN) The European Union’s gas supplies could face significant risks this winter due to its increasing reliance on liquefied Natural gas (LNG) as a substitute for Russian pipeline gas, *The Financial Times* reported. The EU ramped up LNG imports two years ago following the escalation of the Ukraine conflict and sanctions on Russia. However, LNG supply and pricing are highly volatile, subject to disruptions from regional crises, posing a "fundamental problem" for Europe’s energy security.
While EU gas storages are currently full and the winter supply balance appears stable, experts caution that any disruptions could quickly lead to shortages. The EU still receives around 5% of its gas imports from Russia via Ukraine's transit network, but that agreement is set to expire on December 31, with Ukrainian officials unwilling to extend it. Although Russian President Vladimir Putin has indicated that gas supplies could continue through Ukraine if the contract is renewed, the potential loss of this flow, combined with a very cold winter, could drive gas prices higher and exacerbate supply challenges.
Energy analysts also warn that tensions in the Middle East, particularly a potential conflict closure of the Strait of Hormuz, could disrupt up to 20% of global LNG supplies. The EU’s immediate concern is not running out of gas this winter, but facing difficulties in securing enough gas at reasonable prices for the following year.
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