Marco Alvera, the CEO of Snam SpA, said frigid weather at the start of 2022 could boost gas consumption and deplete storage in Europe. Alvera warns that if the winter is colder than usual, Europe’s gas storage level can fall to a “dangerous” point which will push prices to the roof. European gas inventories are currently behind the average for this time of year, and there are quicker-than-usual withdrawals too.
Higher prices have discouraged European buyers from replenishing their stocks. Gas storage sites across Europe are now about 68% full, compared to 77% a month ago and the ten-year average of 85%. Recently a cold snap startled the market, pushing prices up even before the winter started. The European gas market is shaky, with few sources of new supply available.
Alvera said Europe should set up a strategic reserve of gas, which can be released when prices soar. European energy ministers will meet in Brussel on Thursday to discuss plans to protect consumers from inflated energy bills. Soaring gas prices may force factories or industrial firms to cut demand, reducing or even shutting down their output. Governments might also ask industries to switch off to prioritise power supply to households, similar to what China recently did.
Tags: AlwaysFree,English,Europe,Gas
Published on December 2, 2021 10:15 AM (GMT+8)Last Updated on December 2, 2021 10:15 AM (GMT+8)
