IEA Warns EU to Ration Gas Immediately as Storage Facilities Run Dangerously Low Ahead of Winter

The EU is preparing to instruct its member states to ration natural gas usage after the IEA warned that the continent would suffer major shortages should its storage facilities run low ahead of the winter months.

According to a draft document seen by the Financial Times, the European Commission will issue voluntary gas reduction targets to its member states next week, with the potential of making the targets mandatory should shipments from Russia become even more restricted. “Acting jointly now will be less disruptive and costly, facilitating solidarity and avoiding the need for unplanned and uncoordinated actions later in a possible crisis situation with gas reserves running low,” read the paper.

The impending move by Brussels comes after the IEA told Europe that its efforts to diversify from Russian gas will put the continent in a crisis consisting of energy rationing during the winter months if consumption is not curtailed immediately to allow for the replenishment of storage facilities. In fact, the energy watchdog said that the EU’s current efforts to increase supplies from other countries such as Qatar, the US, and Nigeria aren’t enough, and the bloc will need to impose even stricter protocol, such as slashing air conditioning demand and even temporarily exempting coal-powered energy stations from emissions reductions targets.

Prior to the conflict in Ukraine, the EU received about 40% of its natural gas from Russia; however, following tit-for-tat sanctions efforts by the West, Moscow has been using its highly-demanded energy supplies as a weapon against support for Ukraine. So far, Russia has slashed gas shipments to Poland, Finland, Bulgaria, and the Baltic states, and curtailed flows to Italy and Germany. However, should additional gas cuts ensue, the EU’s GDP could fall by up to 1.5%, the commission warned in the leaked document.


Information for this briefing was found via the Financial Times. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

First Majestic Posts Record Quarterly Silver Production In Q3

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

Related News

‘Gas To Guns’: Russia Demands Energy Ministry Employees To Sign Up For Mobilization, But Gazprom Gets A Free Pass

In a move short of desperation, Moscow is conscripting draftees for President Vladimir Putin’s partial...

Friday, September 23, 2022, 10:54:00 AM

Germany Sees Gas Reserves Reaching 85% A Month Ahead Of Schedule, But Is It Enough?

Germany seems to be shoring up its energy reserves faster than its emergency plan as...

Tuesday, August 30, 2022, 03:44:00 PM

Gazprom Halts Nord Stream Gas Shipments Indefinitely Due to Leakage

Natural gas shipments to Europe via Nord Stream 1 have been completely halted due to...

Friday, September 2, 2022, 02:40:24 PM

Canada Will Seek Forfeiture Of Roman Abramovich’s Sanctioned Assets

The Canadian government has announced plans to seize US$26 million in sanctioned assets from Russian...

Tuesday, December 20, 2022, 03:04:00 PM

San Francisco Bay Area to Ban Natural Gas Heating Appliances by 2027

The Bay Area Air Quality Management District Board of Directors (BAAQMD) on Wednesday approved new...

Friday, March 17, 2023, 12:47:00 PM