energy crisis
Birol: We have overcome this difficult winter
Fatih Birol, head of the International Energy Agency, warned of a possible energy shortage during the coming winter, with the arrival of a relatively small amount of new liquefied natural gas to the market, and expected a rise in China’s consumption this year.
Birol told Reuters on the sidelines of the Munich Security Conference on Saturday that European governments had taken a lot of the right decisions over the past year to ensure energy supplies, such as building more liquefied natural gas (LNG) terminals to replace Russian gas flows through pipelines.
He added that European governments were also lucky, as the mild winter weakened demand, and the economic slowdown in China led to the first decline in its consumption in 40 years.
Birol continued, “For this winter we have the right to say that we have overcome the difficult. And if there are no surprises at the last minute, we will get through it… perhaps with some bruises here and there.” “But the question is… what will happen next winter?”
Birol said that an additional 23 billion cubic meters of LNG is expected to be produced this year, adding that with any increase, even a slight one, in economic output with the easing of pandemic restrictions, China is likely to swallow 80% of the extra gas.
He added, “Although we have enough LNG import stations, there may not be enough gas to import, and therefore it will not be easy for Europe during the coming winter,” indicating that this matter will likely push prices up again.
“It is not right to relax and celebrate now,” he added.
He said that even with renewed efforts to develop new gas fields, they will not be operational for years.
He explained that households and companies need to continue efforts to reduce gas use and there is a need to expand more quickly in the production of renewable energy.
Birol warned countries that have decided to phase out nuclear power to reconsider whether this is the best time to do so, saying that “the temporary extension of Germany’s last nuclear power plants to April, for example, was a step in the right direction.”
“We need all the energy sources to help us through the coming winter,” he said.
