Wednesday, May 25, 2022

Europe has no alternative to Russian gas, experts say

The latest speculation about Russia’s hypothetical invasion of Ukraine and potential sanctions pledged by Western countries in response has raised serious concerns about energy security in Europe.

Europe is going through a severe energy crisis, with surging prices for heating and electricity placing an intolerable burden on households and businesses.

Russian gas supplies account for roughly 40% of Europe’s consumption, and although major energy producers like Qatar or Azerbaijan have pledged emergency gas supplies to the region, the volumes shipped by Russia are reportedly hard to replace without affecting other big consumers across the world, especially in Asia, the world’s fastest-growing market.

Europe has no alternative to Russian gas,” BCS Global Markets Senior Analyst Ron Smith said as quoted by Bloomberg. “You would have to divert half of the LNG that Asia consumes in order to replace Gazprom PJSC. And what would that mean? That would mean massive energy shortages all across Asia, you would export Europe’s energy crisis to Asia,” the expert added. Read More »