Media: Europe facing new gas crisis
Europe is threatened by a new gas crisis amid rapidly declining reserves in storage facilities and potential supply cuts from Russia, TASS reports citing Bloomberg
As it is noted, due to the onset of cold weather in Europe, the demand for gas for heating has sharply increased. The situation is complicated by the fact that weak winds in the area of wind farms do not make it possible to fully use this energy source to generate electricity.
Gas prices are up 45 percent year-over-year. As Bloomberg notes, this growth rate is significantly lower than that seen in 2022, but it is still enough to threaten to worsen the inflation crisis and increase pressure on the industry already struggling to survive.
One of the main factors that could lead to a further rise in gas prices in the near future, Bloomberg calls the risk of stopping supplies of pipeline gas from Russia, which is still purchased by some European countries. This could happen due to new US sanctions against Gazprombank, which is used for payments.
Other factors include delays in the delivery of LNG from the United States, as well as cold weather during the winter months. In addition, gas prices are expected to be higher in the summer of 2025 than in the winter of 2025-2026. As a result, filling gas storage facilities in 2025 could be very challenging.
The most affected country may be Germany, whose economy is currently stagnating. In particular, the country’s automotive, mechanical engineering, and chemical industries are experiencing serious problems.
