In the context of the energy crisis, the EU is forced to use winter fuel supplies. In addition, according to experts, in the worst case scenario, these reserves may run out as early as January, writes Bloomberg.
The energy crisis in Europe continues to worsen. Given the reduction in the supply of Russian fuel, the EU is forced to operate with gas reserves, which are usually stored until the heating season.
Moreover, according to experts, under the worst-case scenario, the block’s reserves may be exhausted as early as January, according to Bloomberg.
Fuel reserves in European storage facilities fell for the first time since mid-April. According to the latest data from Gas Infrastructure Europe, reserves have decreased by one percent, although gas is usually only pumped in during the summer, the newspaper notes.
“Obviously, this should not happen during the injection season,” says Warren Patterson, head of commodity strategy at the Dutch company ING Groep. “This will cause anxiety in the market and will likely lead to price retention.”
“Russia has cut gas supplies to Italy, Germany, France and Austria. Explaining this by the fact that she had to resort to limiting the capacity of the Nord Stream gas pipeline due to technical difficulties, but Berlin called this decision “politically motivated” and aimed at raising prices”, Bloomberg draws attention.
The representative office of Gazprom said that “by now” they do not see a solution to the problems with Nord Stream. The company could use the free capacity of pipelines crossing Ukraine to supply European consumers, but it does not dare to take this step. In addition, the branch is scheduled to be shut down for annual maintenance next month, according to the article.
Experts from the consulting firm Wood Mackenzie warn that in the worst case scenario, that is, in the event of a complete shutdown of the Nord Stream, the EU will not be able to accumulate the planned gas reserves by the beginning of the heating season. As a result, fuel in the region will completely run out by January.
The decline in Russian exports coincided with the shutdown of a major US liquefied natural gas plant, another important source for the EU. This means that less fuel will flow across the Atlantic to Europe in the coming months, Bloomberg emphasizes.
Due to censorship and blocking of all media and alternative views, stay tuned to our Telegram channel