BAKU, Azerbaijan, Dec.16. Europe’s 2023 gas supply situation will look much like in autumn 2022, Didier Holleaux, President of Eurogas and IGU Regional Coordinator, said in his article published by the International Gas Union (IGU), Trend reports Dec.16.
“Despite the launch of new lNG plants like Calcasieu Pass in the US and Mozambique LNG and Coral Sul in Mozambique, the supply situation in Europe next year is expected to look much like the one in the autumn of 2022,” said Holleaux.
The Eurogas president pointed out that on the demand side, many countries have introduced subsidies to limit the price paid by different categories of customers.
“These subsidies are very costly, and are complemented by measures to encourage reduced consumption. Some measures are set to be extended in 2024.
Discussions are taking place between gas importers and suppliers, but few contracts have been signed to replace the lost Russian gas in the medium term.
As long as the war in Ukraine continues, so will the European gas crisis, and resulting higher LNG prices will also impact most LNG importing countries. If the number of new long-term gas and LNG contracts that trigger new investments is not enough, existing production and liquefaction capacity globally will not be enough to replace the 110 bcm or more missing Russian supply, and the crisis may drag on beyond 2026,” reads the article.