x

Society

Europe Faces “Unprecedented Risk” of Gas Shortage, IEA Says

October 3, 2022

Europe faces “unprecedented risks” to its natural gas supplies this winter after Russia cut off most pipeline shipments and could wind up competing with Asia for already scarce and expensive liquid gas that comes by ship, the International Energy Agency said.

The Paris-based IEA said in its quarterly gas report released Monday that European Union countries would need to reduce use by 13% over the winter in case of a complete Russian cutoff amid the war in Ukraine. Much of that cutback would have to come from consumer behavior such as turning down thermostats by 1 degree and adjusting boiler temperatures as well as industrial and utility conservation, the group said.

The EU on Friday agreed to mandate a reduction in electricity consumption by at least 5% during peak price hours.

Just a trickle of Russian gas is still arriving in pipelines through Ukraine to Slovakia and across the Black Sea through Turkey to Bulgaria. Two other routes, under the Baltic Sea to Germany and through Belarus and Poland, have shut down.

Another hazard in the study was a late winter cold snap, which would be particularly challenging because underground gas reserves flow more slowly at the end of the season due to less gas and lower pressure in the storage caverns. The EU has already filled storage to 88%, ahead of its goal of 80% before winter. The IEA assumed 90% would be needed in its Russian cutoff scenario.

Businesses in Europe have already cut back natural gas use, sometimes simply by abandoning energy-intensive activity such as making steel and fertilizer, while smaller businesses like bakeries are feeling a severe crimp in their costs.

High prices for gas, which is used for heating homes, generating electricity and a host of industrial processes are feeding through to record consumer inflation of 10% in the 19 EU member countries that use the euro and sapping so much consumer purchasing power that economists predict a recession at the end of this year and the beginning of next.

European governments and utilities have made up much of the Russian shortfall by purchasing expensive supplies of liquefied natural gas, or LNG, that comes by ship from countries such as the U.S. and Qatar and by obtaining increased pipeline supply from Norway and Azerbaijan.

The goal is to prevent storage levels from falling so far that governments must ration gas to businesses. Gas storage must remain above 33% for a secure winter, according to the IEA, while levels below that risk shortages if there’s a late cold snap.

Lower levels also would make it harder for Europe to refill storage next summer, while higher reserves from conservation would help lower extremely high prices.

European leaders say the cutback in Russian gas is energy blackmail aimed at pressuring governments over their support for Ukraine and sanctions against Moscow.

Since Russia halted flows this month through the Nord Stream 1 pipeline running under the Baltic Sea to Germany, it and the parallel Nord Stream 2 — built but never operated after Germany refused to certify it — were damaged in underwater explosions that European governments say are sabotage.

Demand for liquefied gas has driven up prices and tightened supply to the extent that poorer countries in Asia cannot afford it. Bangladesh is experiencing widespread power blackouts, while Pakistan faces rolling blackouts and has introduced reduced working hours for shops and factories to save electricity.

“Interregional competition in LNG procurement may create further tension, as additional European needs would put more pressure on other buyers, especially in Asia, and conversely cold spells in Northeast Asia could limit Europe’s access to LNG,” the agency said.

The gas crisis in Europe has also deprived Asian countries of the limited number of floating regasification terminals, which were expected to play a major role in LNG imports in Southeast Asia. Europe has secured 12 of the vessels and plans another nine.

 

RELATED

ATHENS - The greatest problem in Greece following the restoration of democracy in Greece is the missed opportunities, Prime Minister Kyriakos Mitsotakis said on Thursday evening in a discussion at the "Metapolitefsi: 50 Years Later" conference, which focuses on the fifth-decade anniversary of the restoration of democracy in Greece.

Top Stories

Columnists

A pregnant woman was driving in the HOV lane near Dallas.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.

Video

Firefighters Seek to Corral Massive Texas Wildfires Before Weekend of Higher Temperatures and Winds

CANADIAN, Texas (AP) — The explosive growth of the second-largest wildfire in Texas history slowed as winds and temperatures dipped but the massive blaze was still untamed and threatening more death and destruction.

MOSCOW (AP) — Russian President Vladimir Putin vowed Thursday to fulfill Moscow’s goals in Ukraine and sternly warned the West against deeper involvement in the fighting, saying that such a move is fraught with the risk of a global nuclear conflict.

ATHENS - The greatest problem in Greece following the restoration of democracy in Greece is the missed opportunities, Prime Minister Kyriakos Mitsotakis said on Thursday evening in a discussion at the "Metapolitefsi: 50 Years Later" conference, which focuses on the fifth-decade anniversary of the restoration of democracy in Greece.

NEW YORK – The Greek Orthodox Folk Dance & Choral Festival Ministry of the Metropolis of San Francisco is dedicated, through Orthodox Christian Fellowship and committed leadership, to promoting, encouraging and perpetuating the Orthodox faith, Greek heritage and culture among individuals, families and communities by expressing it through folk dance, folk art, music and language.

NEW YORK – Greek-American Ellie Falaris Ganelin, gifted musician and Greek Chamber Music Project Director, announced a special replay of a concert to be broadcast on Leap Day, February 29.