The gas crisis is expected to persist in 2023, according to energy analysts | ITUGAL

The impacts of the current gas crisis could last for even longer. In December, one of the UK’s most respected energy consultancies warned gas prices could remain high until the end of the decade. If the weather is unseasonably warm, people are unlikely to need as much gas to heat their homes. European gas storage sites with more reserves when winter ends. Next summer the pipelines that connect Russia to Europe are likely to be all but shut off.

Much of the gas imported to the continent will have to be brought in via ships from the US, Qatar and elsewhere. In a bid to be able to get more of this gas to European shores, projects for new terminals have sprung up or been fast-tracked in recent months. By relying on LNG to transport its gas, Europe will lock in years of higher prices for gas. LNG is already an expensive way to transport gas – it takes a lot of energy and expensive equipment to get and keep it cold enough for tankers. And because LNG tankers can travel anywhere they want, to secure the vital gas that it needs. Europe will have to outbid what buyers around the world are willing to pay. Thus, Europe would be locked into years of rising gas costs if it switches to LNG ships as its primary source of gas.


Republished by : ITUGAL


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