- According to the IEA, Europe’s next-year natural gas shortfall could be worse if Russia keeps cutting supplies and Chinese demand rebounds.
- To ease constraints, the energy watchdog called for a reduction in gas demand on the continent.
- Fatih Birol from the IEA stated, “There is a danger that complacency creeping over into the discussion around Europe’s natural gas supplies.”
The International Energy Agency warned that while Europe’s natural gas stocks are almost full going into winter, next year the situation will be even worse.
The energy watchdog stated that Europe could face a supply shortage of up to 30 billion cubic metres of natural gas in the summer period 2023 for the refilling of storage sites. Report published Thursday.
Fatih Birol, Executive Director of IEA, stated that “with the recent mild weather, lower gas prices, and the possibility of complacency creeping in to the conversation about Europe’s gas supplies,” but added that they are not yet out of the woods.” “When we examine the most recent trends and expected developments in European and global gaz markets, we see Europe is facing an even more difficult challenge next winter,” said Fatih Birol.
Europe has imported record quantities of liquefied natural gases this year and has enjoyed a more mild winter than predicted. Recent price declines have been due to warmer temperatures and better weather forecasts. European natural gas.
Birol however warned that Europe should take immediate actions to avoid a shortage of natural gas next year.
According to the IEA, there is a possibility that Russian gas supplies will cease completely next winter or decrease by less than half what they were this past year. China could relax its zero COVID policies, which would allow natural gas demand to return to pre-pandemic levels.
Birol said that Europe may not have half the quantity it needs to stockpiles of up to 95% this winter because of the supply gap. He stated that storage facilities will not be able to fill up to 65% unless this gap is closed.
Birol stated that the IEA will continue to push European governments to adopt policies for alternative energy and renewables as well as tap into nuclear energy in certain countries.
