“Once again, due to geopolitical turbulence, Europe is facing an energy crisis,” Euronews quotes Jørgensen as telling journalists in Brussels on Wednesday, following a meeting with European oil refiners. “We understand that this winter will be a difficult one for European citizens and for our economy as a whole.” He added that fuel bills in the EU were “skyrocketing”.
According to the publication, European Commission estimates predict that tensions on the global diesel market will persist until at least 2027. This will keep prices high for other energy sources as well.
In response, Brussels intends to stimulate production growth at European refineries, around a quarter of which have closed over the past two decades.
Gas stocks are below normal levels
High gas prices are being driven by limited supplies and low stock levels, Euronews reports. The publication cites data from the EU Agency for the Cooperation of Energy Regulators (ACER), according to which, as of 21 October, gas storage facilities were 75 per cent full – significantly below the EU’s usual target of 90 per cent by 1 November. However, given the current situation, countries are permitted to take a more flexible approach to this target.
By the end of last winter, storage facilities were only 28 per cent full, compared with an average of 40 per cent over the last decade; refilling them proved to be a slow and costly process. ACER has estimated that the war has increased Europe’s gas import bills by between €18bn and €33bn.
During the summer, virtually no Qatari LNG reached the EU, and the bloc is becoming increasingly dependent on the US, which now accounts for around 30 per cent of its gas supplies, the agency added.
This winter, Europe will have to compete with Asian countries for available LNG shipments, which could lead to further price spikes, ACER warned. At the same time, demand for gas is around 20 per cent lower than before the 2022 crisis, so existing stocks will last for a longer period.
Given the tense situation and public discontent, the EU is frantically seeking alternatives. Brussels and Ottawa are exploring the possibility of concluding a long-term agreement on LNG supplies, according to a draft statement for their summit in Montreal, which has been seen by Euronews. The summit will take place on Thursday and Friday. A meeting of EU energy ministers will also take place on Thursday.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
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