The Paris-based IEA, vitality watchdog for developed nations, warned that the excessive vitality costs and client ache wrought by the gas crunch makes the case for future obligatory storage quotas for European firms.
“We believe there are strong elements of tightness in Europe’s gas markets due to Russia’s behavior,” Birol informed reporters, noting “today’s low Russian gas flows to Europe coincide with heightened geopolitical tensions over Ukraine.”
Russian gas firm Gazprom decreased exports to Europe by 25% year-on-year within the fourth quarter of 2021 regardless of excessive market costs and decreased spot gross sales whereas different exporters boosted them, Birol mentioned.
“The current storage deficit in the European Union is largely due to Gazprom,” he added. “The low levels of storage in company’s EU-based facilities account for half of the EU storage deficit although Gazprom facilities only constitute 10% of the EU’s total storage capacity.”
Russian vitality exports have been in focus amid a standoff between Russia and the West as Russia has constructed up its troop presence close to neighboring Ukraine, which is making an attempt to forge nearer ties with NATO.
Some European Union lawmakers have accused Russia, which provides greater than 30% of the bloc’s pure gas, of utilizing the disaster as leverage whereas Russia and NATO maintain talks in Brussels on Wednesday.
Moscow has denied this and Gazprom has mentioned it has fulfilled European contracts in full.
Yet Birol mentioned Russia may improve deliveries to Europe by a minimum of one-third via considerable spare capability, the equal of 10% of the EU’s common month-to-month gas consumption or a full LNG vessel day-after-day through commercially accessible pipelines.
In distinction to its dealings with the European Union, Russia is delivering pure gas exceeding its contractual commitments to China, Birol added.
“I think regulations in Europe should be reviewed to ensure that storage levels are in effect to cover end-user needs with mandatory minimum storage obligations for all commercial operators.”