European Union Faces Gas Shortage Warning Ahead of Winter

According to the International Desk of Webangah News Agency, the American Institute for Energy Economics and Financial Analysis has warned that the European Union‘s gas reserves have fallen to just over 70%, marking the lowest level recorded for this period since 2011.

The report highlights a potential deficit of 14 billion cubic meters of gas, which could impact the energy supply for an estimated 10 to 12 million European households. In a scenario involving a cold winter and limitations on liquefied natural gas (LNG) imports, Europe’s reserves could decline by an additional 11 percent.

Furthermore, the planned prohibition of long-term contracts for Russian LNG imports, effective January, could reduce Europe’s imports by another 7 billion cubic meters.

The report suggests that Europe could compensate for potential shortages by increasing LNG imports, particularly from the United States. However, at current prices, this action would incur an additional cost of approximately 3 billion euros, representing a 12 percent increase compared to the cost of securing the same volume of gas last year.