Fri. Sep 22nd, 2023
    Europe’s Energy Crisis: Risks to Supply Continue

    The CEO of French utility giant Engie, Catherine MacGregor, has stated that Europe’s energy crisis is far from over and risks to supply will persist until new LNG volumes hit the market in 2026. Despite Europe expecting the coming winter with more confidence compared to last year, MacGregor warns against complacency due to rising LNG demand from other regions and potential supply disruptions.

    According to MacGregor, Europe’s ability to manoeuver in the coming years may be limited until new LNG supply becomes available after 2026. Although the EU’s gas storage sites were 94% full early this week, European benchmark prices have been volatile recently due to strikes at Australian LNG export facilities and increasing spot LNG demand from Asia.

    Germany, Europe’s largest economy, expects natural gas prices to remain high until at least 2027. INES, the group of German gas storage operators, has also warned that Germany will continue to be at risk of natural gas shortages until the 2026/2027 winter season unless additional measures are taken, such as the addition of LNG terminals, extra gas storage capacity, or pipelines.

    MacGregor emphasizes that the risk of a gas shortage during cold temperatures still exists and will probably remain until winter 2026/27 without further infrastructural measures. It is only after that time that reduced gas consumption might eliminate the need for additional measures.