Europe could see natural gas shortages, prices rise this summer | Letter to Cyprus

Europe’s natural gas shortage this summer, coupled with a sharp rise in commodity prices, is a real danger.

Jack Europe, a researcher at the Oxford Institute for Energy Research, says: Politician. “It only takes a few [liquefied natural gas] Projects are currently offline, or unplanned repairs to the pipeline to Europe, or just another cold winter.

The European Union has a storage capacity of 117 billion cubic meters (natural gas) or one-fifth of its annual consumption.

Currently, EU storage facilities are filled with only 60 percent capacity or less than 70 Bm. That should be at least 80 bcm by October 1, Sharps said.

Europe has survived the winter because of a slowdown in economic activity due to a pandemic. This year, there is a strong revival of industrial production and consumer demand for natural gas supplies.

Meanwhile, Russia’s supply is declining. “Europe’s gas bases are tight and Russia’s persistent weakness is a source of concern,” EG Energy’s analysts said in a statement on Monday. There are speculations that Russia will supply natural gas to Europe until the construction of the North Stream 2 pipeline.

And there were a number of technical issues with other international suppliers, which resulted in a 5 percent or more market loss of LNG supplies, valued at 20 BM per year. The Oxford Institute told him Politician.

According to Global PatrolPrix.com, natural gas prices in Europe and the UK have risen to record highs.

In the UK, one kWh of natural gas households costs 3 0.039, and businesses spend 30 0.030. This is the highest price since 2005.

Prices in Europe for the first time reached € 40 per megawatt.

Driven by these price increases is also the transfer of large amounts of natural gas to prices in Asian markets.

Unfortunately, natural gas prices are unlikely to fall, and Europe hopes for a simple winter to delay demand.

BP chief financial officer Muray Aquchinsloz said this week that he did not expect prices to remain stable until 2022, and that even then there was a lot of uncertainty.

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