The managing director of the International Energy Agency (IEA), Fatih Birol, warns of possible energy shortages this winter. According to him, this is because little new liquefied natural gas (LNG) is coming to the market, while consumption in China is increasing this year.
He says Europe was lucky this winter with mild weather, which reduced gas demand. Additionally, there has also been less demand from China due to a weakened economy. It is the first time in forty years.
Surprises
‘For this winter we can say that there are no more problems. If there are no last minute surprises, we should be fine. But the question is what will happen next winter,” Birol told Reuters news agency. According to him, only a small economic recovery is needed in China to ensure huge additional demand for gas.
The possible gas shortage for next winter should push prices up again. Gas prices have fallen dramatically in recent months. According to Birol, it’s not good to sit and relax now. The IEA chief indicated last month that some governments in Europe are too optimistic about the current state of the gas market thanks to mild winter weather. According to Birol, it remains important to save as much gas as possible.
Source: BNR
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