IEA chief Fatih Birol warns of low gas reserves in the EU — Al Jazeera
In Berlin, Germany, International Energy Agency chief Fatih Birol warned that the European Union is entering winter with historically low gas reserves and may not withstand new supply disruptions. He said this in an interview with Al Jazeera on the sidelines of an international conference.
According to Birol, energy supply disruptions through the Strait of Hormuz affect all regions, but Europe is particularly vulnerable. He expects the cost of liquefied natural gas for European buyers to rise in the coming months even if peace returns quickly to the Persian Gulf.
Reserves below the usual level
Natural gas storage facilities in the EU are 72% full, while this figure is usually about 90% before winter, the outlet reports. Analysts cited by Al Jazeera estimate the shortfall as equivalent to the energy needed to supply 10–12 million households.
Birol noted that Europe is competing for gas with Asian countries that are even more dependent on energy resources from the Middle East. In his assessment, a severe winter could cause further increases in natural gas prices in Europe. According to media reports, energy ministers from EU countries are also considering calling on households and businesses to reduce consumption.
More current news is available on the UA.News Telegram channel Telegram.
Risks for LNG and diesel
Before the war, nearly one-tenth of the liquefied natural gas arriving in Europe passed through the Strait of Hormuz. Al Jazeera writes that import volumes fell sharply after Iran's attacks on vessels. Birol also drew attention to the escalation in the Bab el-Mandeb Strait area, which further complicates energy transportation.
In addition to gas, the EU may face shortages of imported petroleum products, including diesel. Birol also linked the risks of diesel fuel shortages to Ukraine's strikes on Russian oil refineries. According to him, approximately one-third of supplies from Russia, the aggressor state, have ceased.
Birol said that after the G7 countries decided to release strategic oil and diesel reserves onto the market, oil prices temporarily fell by $20. At the same time, gas has risen in price by 140% since February, while Brent oil is trading above $100 per barrel. He stressed that the global energy system has increasingly little reserve capacity to respond to new shocks.
