Energy crisis: Gas prices in Europe are "in the hands" of other countries

The European gas market has been much more stable at the start of this winter thanks to full storage tanks and stable supplies of liquefied natural gas (LNG).

Khủng hoảng năng lượng: Giá khí đốt ở châu Âu 'nằm trong tay' quốc gia khác - không phải Nga

Gas prices could continue to rise in Europe. (Source: en-former)

However, experts warn that even if the European Union (EU) manages to get through this winter without major disruptions or shortages in gas supplies, it will still have to face the reality that natural gas prices are being determined elsewhere, such as Australia, Japan, China and the United States.

“Europe has no problem buying LNG, but the price it pays for gas will be determined elsewhere,” wrote market analyst John Kemp of Reuters news agency.

Growing reliance on LNG, which has largely replaced Russian pipeline gas supplies, makes Europe more vulnerable to global supply and demand issues.

Oil Price notes that a strike at an Australian LNG export terminal, a fire at a US export plant or a severe cold snap in Japan or China will immediately impact the price of the European benchmark natural gas. This has been evident over the past two months.

“Gas storage is full, but this does not mean energy security,” said Diego Pellegrino, trader and CEO of Eroga Energia.

Gas storage levels across the EU are at record levels, with inventories now 20% higher than the 10-year average, according to data compiled by Gas Infrastructure Europe (GIE).

In Europe, benchmark natural gas prices were mixed this week, as traders weighed higher heating demand amid colder weather, despite near-full storage volumes.

Experts say that with the cold winter weather approaching, gas prices could continue to rise, at least in Europe, due to a surge in demand. The risk of price increases remains due to transportation challenges and disruptions in the Middle East.

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