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Europe's Natural Gas Concern Grows; Limited Distribution Available

Gas prices started the week with an increase of 8 percent due to the restrictions imposed by Russia on European natural gas exports.

Europe's Natural Gas Concern Grows; Limited Distribution Available
Yazar: James Gordon

Yayınlanma: 21 Haziran 2022 18:15

Güncellenme: 6 Kasım 2024 11:39

Europe's Natural Gas Concern Grows; Limited Distribution Available

Gas prices started the week with an increase of 8 percent due to the restrictions imposed by Russia on European natural gas exports. This move of Russia caused the risk of gas distribution in Europe within certain limits.

Natural gas prices reached record levels after the restrictions imposed by Russia on the gas it shipped to Europe. While it put the European countries where Russia supplies natural gas on red alert, it increased the possibility of limited distribution. With the gas shipped from the Nord Stream pipeline remaining around 40 percent, benchmark gas prices increased by 8 percent. Russian natural gas giant Gazprom CEO Alexey Miller noted that there is no new development regarding gas turbines, which he said are essential for the operation of the pipelines, so the supply will continue at a low level. Following these constraints, Europe will be forced to tap into its winter reserves. The European Commission accuses Russia of using energy for blackmail after significant reductions in the amount of gas provided to Germany, Italy, and France, three of Europe's top importers. German Economy Minister Robert Habeck said: “The supply security is now ensured. However, the situation remains serious.” Europe has been searching around the world for more supply from other sources for some time now and is trying to increase its imports of liquefied gas in case of shortfalls.
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