A “perfect winter storm” may be forming in Europe, as the continent seeks to limit Russian gas flows, analysts at Rystad Energy said in a press release this week. They added there might be not enough LNG to replace Russian gas during the freezing weather. The price of gas in the EU was projected to soar to $3,500 per 1,000 cubic meters.
According to the report, last year Russia sent 155 billion cubic meters (bcm) of gas to the continent, providing more than 31% of its gas supply.
“Replacing a significant portion of this will be exceedingly difficult, with far-reaching consequences for Europe’s population, economy, and for the role of gas in the region’s energy transition.”
By shunning Russian gas, Europe has destabilized the entire global LNG (Liquefied Natural Gas) market, which began the year with a precarious balance after a tumultuous 2021, Rystad explained. The decision to sharply reduce reliance on Russian gas and LNG from current levels of between 30-40% will transform the global LNG market, it added.