Gas reserves under pressure
Temperatures across Europe are forecast to drop sharply by the end of the week.
London, Paris, and Berlin are expected to see average temperatures below freezing on Friday and Saturday, according to data from the International Meteorological Service. These temperatures will be around 6 degrees Celsius lower than the normal average of the past 30 years. The UK Met Office predicts some snow in the coming days, along with extreme winds and rain.
Germany’s meteorological service, DWD, has also issued warnings for frost and ice across the country.
This cold snap, the chilliest period so far this winter, is likely to drive up heating demand, drawing on natural gas reserves that have fallen below 75%. Withdrawals from reserves have already been faster than usual this year. Combined with the looming expiry of the Ukraine-Russia gas transit agreement, this has pushed European natural gas prices close to the high levels seen earlier this month.
The potential loss of Russian gas flows could make Europe more reliant on liquefied natural gas (LNG) imports from the US. However, colder weather in the US is also driving up domestic demand, adding further strain to global gas supplies.
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Source: newmoney.gr
