Europe

The gas deficit in the EU may last until spring 2022

The gas deficit in the EU may last until spring 2022

The head of the energy projects department of international audit and consulting network FinExpertiza in Hungary, Mate Toth, said that there is a shortage of gas on the European market, pushing prices up, and it could last until spring, and this deficit is associated with the intensive “greening” and the limited market for liquefied natural gas (LNG).

“There is a shortage of gas on the European market, and this pushes prices up. The shortage could last until next spring. The situation is related to intensive greening across Europe, production cuts, a sharp increase in the cost of CO2 emission quotas, and a limited LNG market,” Toth said.

He noted that many countries expected a decrease in gas prices to 2020 levels. That was the reason they stopped buying at the beginning of 2021 in order to buy gas at a lower cost.

Toth added that gas prices may adjust as early as next year. In the short term, a milder winter and the launch of Nord Stream  2 may contribute to lower gas prices.

Earlier it became known that at least four small energy companies in the UK are expected to go bankrupt in the coming days amid rising wholesale gas prices.



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