23 Hrs
Source:
الاقتصادية
_1777294237270_124456903.png&w=64&q=75){kind=small}
Europe faces higher prices as gas storage declines
Europe is facing a significant problem in storing gas as the winter season approaches, with storage levels falling to the lowest recorded since 2009, at about 71% capacity compared to a seasonal average of 87%. The cause of this issue is the decreased economic viability of storing gas due to the shrinking price differential between summer and winter, which hampers the effective injection and accumulation of gas. This increases the risk of supply shortages and higher prices in the coming winter. Additionally, disruptions in gas supplies caused by major issues such as the war in Ukraine and conflicts in Iran have led Europe to rely more heavily on high-priced liquefied natural gas (LNG) imports, with projections indicating rising costs and jeopardized gas supply security during the heating season. Governments are now considering the creation of strategic reserves and supporting storage operations to enhance energy security and reduce risks, especially since previous reliance was on commercial stocks that are vulnerable to market prices.
Size: 120%Text Size
Notice: This Is an AI-Generated Summary
Comments (0)