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Rising supply of non-Russian gas and lower demand will likely help Europe go through this winter, and the winter after that without devastating shortages of gas, the top French gas distributor Engie said on Tuesday.
“For this winter, the feeling is that we’ll manage” because gas inventories are still almost full in western Europe, Engie’s chairman Jean-Pierre Clamadieu said at a conference in Paris on Tuesday, as quoted by Bloomberg.
“Our experts at Engie have the feeling that we should manage to go through next winter without too many difficulties,” too, Clamadieu added.
Most analysts and top industry executives also believe that Europe is more or less prepared to face this winter with nearly full gas storage sites and a steady flow of LNG imports. Still, the regulator in the biggest economy, Germany, has recently warned that it might have to take drastic measures, such as gas rationing, if levels of gas in storage drop below 40% by February 1, 2023.
The real concern about gas supply is for the winter after this one, the top executives of Europe’s biggest oil and gas majors said just before the heating season began.
“I think it has been addressed for this winter,” BP’s chief executive Bernard Looney said at a panel at the ADIPEC energy conference in Abu Dhabi in early November.
“It’s the next winter I think many of us worry, in Europe, could be even more challenging,” Looney said.
Claudio Descalzi, the chief executive of Italy’s Eni, said on the same panel, “We are in good shape for this winter.”
“But as we said, the issue is not this winter. It will be the next one, because we are not going to have Russian gas – 98% [less] next year, maybe nothing,” Descalzi added.
The significant drop in Russian gas supply this year occurred only in June, meaning that Europe was able to stock up on some Russian gas earlier this year. But ahead of the 2023/2024 winter, the gap in gas supply in Europe will be much wider without Russian gas.
By Josh Owens for Oilprice.com
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Josh Owens is the Content Director at Oilprice.com. An International Relations and Politics graduate from the University of Edinburgh, Josh specialized in Middle East and…