December 9, 2022

Crisis

International Energy Agency: The current energy crisis is unprecedented

“The world is in the midst of the first truly global energy crisis,” said International Energy Agency Executive Director Fatih Birol, He said Today in Singapore.

The official went on to warn that natural gas and LNG markets will tighten further in 2023, with just 20 million tons of new liquefaction capacity set to begin that year, according to Reuters. mentioned.

Speaking at International Energy Week in Singapore, the head of the International Energy Agency also said that while supply remains tight, gas demand will remain strong, especially in Europe and possibly China.

Birol’s warning comes amid Expectations This winter will not be the hardest for Europe. It is believed that the coming winter could be much worse because, during the first half of this year, the European Union could stockpile Russian pipeline gas, which is unlikely to return next year, leaving the European Union with a supply gap like other suppliers. Extreme pressure to fill.

Meanwhile, as many as 60 LNG carriers have been diverted to floating storage off the European coast as there is not enough gas-to-gas regasification capacity on the continent to offload the cargo.

This is CNBC ReportsIt is delaying the return of some tankers to the Gulf Coast for reloading, and is driving gas stocks higher, Andrew Lebow of Lipow Oil Associates told the network.

“The wave of LNG carriers has overshadowed the ability of gas-to-gasification facilities in Europe to offload cargo in a timely manner,” Lipow said.

The shortage of LNG import capacity is exacerbating the gas supply crisis in Europe, but there is no quick solution to this problem except for regasification units, which Germany, for example, seeks to deploy by the end of the year.

The price is also a challenge, as LNG is much more expensive than the cost of the pipeline that Europe is used to. Earlier this month, French President Emmanuel Macron criticized the US for setting double standards in this regard, noting that the cost of gas is much lower in the US market than in the international LNG market.

By Irina Slough for Oilprice.com

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