Europe may face an extremely difficult winter due to natural gas shortages
Anders Opedal, CEO of Norway's state-owned energy giant—Europe's largest natural gas supplier—said it is highly likely that Europe will fail to meet its target of filling gas storage facilities to 80% before winter arrives.
The core issue lies in Europe’s competition with Asia for liquefied natural gas (LNG) supplies. Current storage fill rates stand at only 54%, the second-lowest level in nearly 15 years.
Opedal explained, “Natural gas originally destined for Europe from Qatar has instead been redirected to Asia. LNG cargo ships that were scheduled to deliver to Europe earlier this year have now changed course toward Asian markets.”
He emphasized that, due to low baseline reserves, Europe’s ability to withstand sharp fluctuations in natural gas prices this winter will be significantly more vulnerable than in previous years.
As Asia’s economy rebounds, demand for LNG has surged, intensifying global competition for LNG supplies. Unlike in past years when flows were preferentially directed toward Europe, today’s shift directly hampers European stockpiling progress—not because of a single supply disruption, but due to structural competition within the global energy market.
The current 54% storage rate is merely a snapshot figure. With several months still remaining before winter, Europe still has the opportunity to replenish stocks through high-price bidding. The report serves as a risk warning rather than a predetermined outcome. Should cold waves or pipeline failures occur, low reserves could rapidly drive up gas electricity prices, increasing burdens on households and raising industrial production costs.
Original source: toutiao.com/article/1871744422720524/
Disclaimer: The views expressed in this article are those of the author(s) alone.