Automotive Exports December 2022

Europe could face gas
shortage next year: IEA
Europe must act immediately to prevent
a shortage of natural gas next year as
Russia slashes deliveries in the wake of
the Ukraine war, the International Energy
Agency warned.
The IEA said the shortfall would occur if
Russia stops pipelines deliveries completely
and China steps up its imports of liquefied
natural gas, which Europe has relied upon
to replace Russian supplies.
The region could lack 30 billion cubic
metres that it needs “to fuel its economy
and sufficiently refill storage sites during
the summer of 2023, jeopardising its
preparations for the winter of 2023-
24,” the Paris-based agency said in a
report. “We believe Europe needs to take
immediate action to avoid risks of natural
gas shortage next year,” EA Executive
Director Fatih Birol told reporters.
“We’re ringing alarm bells for the European
governments and for the European
Commission for next year,” he said.
Russia has drastically cut supplies to Europe
in suspected retaliation against Western
sanctions over its
invasion of Ukraine,
but the region
was able to fill
storage sites for this
upcoming winter.
The IEA said Moscow delivered 60 billion
cubic metres of gas to Europe this year but
that it was “highly unlikely” that Russia
would provide the same amount in 2023
and could cease deliveries entirely.
And while Chinese LNG imports were
lower in the first 10 months of this year,
the world’s second biggest economy could
grab 85 percent of the expected increase in
global LNG supplies if its purchases recover
next year.
European Union governments have urged
business and households to conserve
energy this winter in efforts to lower
demand and scrambled to find alternative
suppliers.
Norway has overtaken Russia as Europe’s
main natural gas supplier. The region has
also shipping LNG from other countries at
a rate that has caused bottlenecks at ports.
Gas prices, meanwhile, have fallen sharply.
But Birol said Europe’s gas storage sites
may only be 65 percent full in 2023,
compared to 95 percent this year.
“With the recent mild weather and
lower gas prices, there is a danger
of complacency creeping into the
conversation around Europe’s gas supplies,
but we are by no means out of the woods
yet,” Birol said in a separate statement.
Birol warned that Europe will face “an even
sterner challenge” next winter.
“This is why governments need to be
taking immediate action to speed up
improvements in energy efficiency and
accelerate the deployment of renewables
and heat pumps -- and other steps to
structurally reduce gas demand,” he said.
December 2022 52