OIL & GAS

Explained: How Europe is trying to deal with its gas crisis

Europe’s natural gas crisis isn’t letting up. Reserves are low. Prices are high. Utility customers are facing expensive bills. Major Russian supplier Gazprom isn’t selling gas like it used to.

It all raises the question: How exactly is Europe, which imports most of its energy, going to make it through the winter without a gas disaster, especially if the season turns out to be colder or longer than usual?

Utilities turn to gas stored in underground caverns to handle sudden additional demand for gas for heating or electricity. Europe started 2021 with gas storage only 56 per cent full, compared with 73 per cent a year earlier. The reasons vary: cold weather last winter, lack of Russian deliveries on the spot market and robust demand in Asia for liquid natural gas that comes by ship. Europe’s association of pipeline operators says cold weather would mean needing to import 5per cent to 10per cent more gas than the maximum volumes observed in recent years to avoid the risk of shutoffs.

Source
Indian express
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