Categories: Economy

Top Concerns Over Ending Gas Crisis: ‘Volatility Is Gone’ Related articles

Due to lower gas prices and still well-stocked reserves, calm seems to have returned to the energy markets. However, there is still some concern from the Cabinet, writes FD. The current calm is not temporary, thinks energy expert Jilles van den Beukel of the Center for Political Studies in The Hague. “The volatility is gone and I don’t expect it to come back anytime soon.”

Van den Beukel mentions, among other things, the gas price of 45 euros per megawatt hour. “Price has been fairly stable for a month or two. Unless there are big surprises, like a pipeline explosion, that stability won’t go away.’

Sanctions

Due to the Russian invasion of Ukraine, EU countries have stopped importing Russian raw materials en masse, partly due to sanctions. In addition, Russia has increasingly reduced the supply of Russian gas in 2022. The icing on the cake was the sabotage of the Nord Stream pipelines, which meant that Russian gas was not reaching Europe at all.

Due to the reduced supply, European countries started to replenish their gas stocks in early 2022, in case a harsh winter arrives and gas demand is high. Since the winter has been relatively mild, supplies are still well stocked, says the energy expert. “Across Europe the reserves are still about 50-55% full, they have not been completely depleted.”

The cabinet wants to pay a lot

Consequently, Van den Beukel also has good hopes for next winter. “That makes it easier to fill them up to 90 percent again this summer.” The energy expert particularly praises the policy of European governments for this. ‘The measures have really helped.’ Energy Minister Rob Jetten has already said the cabinet is ready to refill gas storage facilities again this year and pay a steep price for it.

Utrecht, The old woman puts the thermostat on the heating at 19 degrees. Photo: ANP / Hollandse Hoogte / Gerard Til (ANP / Gerard Til photo)

AuthorSt: BNR Web Redactie and Aaron Loupatty
Source: BNR

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