Europe braces for potential energy shortages

Despite it being the summer season, prices for natural gas and liquefied natural gas (LNG) on global energy markets remain as high as during the winter period, AzerNEWS reports.

Analysts attribute the surge mainly to the renewed escalation of military tensions between Iran and the United States in the Gulf region.

Natural gas prices on the European market have reached around $700 per 1,000 cubic meters, while prices at the Netherlands-based TTF hub stand at approximately $716. Although some European countries have increased LNG imports from the United States, supplies have not been sufficient to fully meet demand. At the same time, the process of filling underground gas storage facilities is progressing slowly.

None of the gas storage facilities across European countries has exceeded 55% capacity, according to available data. European media reports that some countries have raised the possibility of resuming natural gas imports from Russia. The European Union, however, has struggled to find effective arguments to prevent such discussions.

Even if the EU were to lift sanctions against Russia, restoring Russian gas exports would not be possible in the near term. The conflict between Russia and Ukraine has intensified significantly, with both sides showing little willingness to compromise. In addition, much of the infrastructure and pipeline network previously used for gas transportation has been damaged or destroyed, making a quick restoration unlikely.

Despite these challenges, European countries continue to purchase Russian LNG. According to the Financial Times, EU member states imported 9.89 million tonnes of Russian LNG worth €6 billion during the first six months of this year, representing an 18% increase compared with the same period last year.

Meanwhile, unexpected energy-related expenses continue to put pressure on European budgets. Replacing funds allocated for energy purchases has become increasingly difficult, as energy shortages are limiting economic growth.

Image: Hannibal Hanschke / Reuters