Europe does not have many alternatives to Russian gas

TASS news agency (Russia) on May 1 quoted the Washington Post (USA) as saying that European countries do not have many alternatives that allow them to be independent of Russian natural gas supplies. and avoid serious economic problems next winter.

“In almost any scenario, the next 18 months will be a difficult time for Europe, as the impact of high energy prices around the world and governments struggle to power factories, keep heating indoors and keep power plants running. Europe doesn’t have enough alternatives in the near term to avoid major economic damage next winter if Russia cuts supply.” article written.

The Washington Post quoted Edward Chow, an energy security scholar at the Center for Strategic and International Studies, noting that current global gas supply volumes are unlikely to change drastically anytime soon. No supplier can produce more liquefied natural gas so quickly.

In the opinion of the newspaper, Germany, the economic engine of Europe, is not particularly prepared for the current scenario. Before Russia launched a special military operation in Ukraine, the country received almost half of its natural gas from Russia.

Currently, Germany has reduced its imports from Russia to 35%, but there is no condition to be completely independent from Russian gas anytime soon. Berlin lacks the infrastructure to import liquefied natural gas.

The article quoted German Economy Minister Robert Habeck as saying Germany would fall into recession without Russian gas.

“Instead of buying oil and natural gas from Russia – which has very low production costs and cheap pipeline transport – Europe must first turn to more expensive alternatives like from the US. Under this project, European companies have to pay an additional 30 to 50% of the gas cost for a vessel carrying liquefied natural gas from the Gulf of Mexico to Europe with a total journey of 24 days,” the article said.

Furthermore, according to The Washington Post, European countries are unlikely to diversify their gas imports in the short term, because “a new natural gas supply project usually takes as little as two to three years.” 4 years to build”.

Alternatively, investors may be wary of large, long-term natural gas projects as governments and businesses are moving towards more environmentally friendly energies.

According to experts cited by the newspaper, the countries most affected by the cessation of Russian gas supplies will be Germany, whose gas storage capacity is only 33.5%, Italy (35%). ) and Hungary (19.4%). The International Monetary Fund (IMF) thinks that European nations can survive about six months without Russian gas supplies. Then serious economic problems can emerge.