IEA Warn of EU 30bcm Gas Supply-Demand Gap Next Summer

IEA analysis suggests a potential 30bcm supply-demand gap in EU gas next summer

• The deficit would arise if Russia halts all pipeline deliveries and China’s LNG imports rebound and could impact on EU ability to restock storage next year.
• The report from IEA highlights the need for action from governments to reduce gas consumption. They warn the current high storage levels and warm temperatures should not lead to overly optimistic conclusions about the future
• Russia supplied 60bcm of gas in summer 2022 and flows are unlikely to repeat that in summer 2023. Reduced demand from China has enabled LNG imports to Europe in 2022 but a recovery in demand to 2021 levels could compete for supplies with Europe.
• “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,” said IEA Executive Director Fatih Birol.
• “When we look at the latest trends and likely developments in global and European gas markets, we see that Europe is set to face an even sterner challenge next winter.”
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