Europe's Soaring Gas Bill Is Sending Utilities Back To Coal
ENTSOG said a severe cold snap could force the bloc to curb gas use by up to 15% as low storage and tight LNG supplies keep prices elevated.
- On Thursday, European natural gas prices crossed €80 per megawatt-hour, driven by shipping constraints through the Strait of Hormuz disrupting global liquefied natural gas supplies as winter approaches.
- Shipping constraints through the Strait of Hormuz, controlling 20% of global liquefied natural gas trade, have throttled exports from Qatar and the United Arab Emirates since the war began on February 28.
- The European Union enters winter with gas storage facilities just 72% full as of October 1, down from 83% at the same point last year, according to the Institute for Energy Economics and Financial Analysis .
- Reporting last Friday, IEEFA estimated the bloc might need to cut winter gas demand by 7%, or 14 billion cubic meters, compared with last winter.
- Utilities increasingly prioritize coal over gas due to cost disparities, though analysts warn this strategy "risks locking in fossil fuel infrastructure for decades," complicating the European Union's long-term decarbonization commitments.
108 Articles
108 Articles
Bloc could face a 14 billion-cubic-meter gas shortfall this winter, equivalent to 7% of demand, according to reports shared with media outlets
In winter, the countries of the European Union may face a shortage of up to 14 billion cubic meters of natural gas, which is about 7% of annual demand.
The occupancy rate at the European Union's natural gas storage facilities fell to 72.4 percent on Oct. 3, seeing the lowest level on a seasonal basis since 2011. The IEEFA has warned that gas consumption could be cut by 7 percent this winter due to the ban on Russian LNG and high prices due to the Iran war.
EU natural gas stocks have fallen to their lowest level for this time of year since 2011, just over 70% The post Natural gas bell: Winter of shortages and price increases appeared first on in.gr.
The European Union may have to use 7 percent less gas this winter than last winter. This warning comes from the Institute for Energy Economics and Financial Analysis (IEEFA). European gas reserves are exceptionally low, while the war in Iran is keeping gas prices high. The impending ban on Russian liquefied natural gas (LNG) is also adding to the pressure.
The European Union risks entering the winter of 2026-2027 with insufficient gas reserves to cope with a cold season, on the background of tensions in the Middle East and competition for liquefied natural gas, says Politico. A report by the Institute for Energy Economics and Financial Analysis estimates a possible deficit of up to 14 billion cubic metres, equivalent to about 7% of EU demand. In an unfavourable scenario, prices could rise, and Sta…
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