These days there is panic across Europe due to the cut off gas supply by Russia. Russia has cut gas supplies to European countries by half in the past week. European leaders and businesses fear that Russia’s cut of natural gas supplies will trigger an economic and political crisis next winter or perhaps earlier.
Russia last week cut gas supplies to five European Union (EU) countries, including Germany, the largest economy that relies heavily on Moscow’s gas to generate electricity and the power industry.
Russian state-owned energy giant Gazprom has cut supply from Russia to Germany via the Nord Stream 1 pipeline running under the Baltic Sea – Europe’s leading natural gas pipeline by up to 60%, with Italy seeing its supply cut in half Is. Austria, the Czech Republic and Slovakia also saw supply cuts.
However, the latest cuts affected countries that are major economies and use a lot of Russian natural gas. Germany is dependent on Russia for 35% of its gas imports, while Italy is dependent on Russia for 40%. Europe is scrambling to fill up its underground gas storage before winter. The reduction would make refilling storage more expensive and more difficult to meet.
Right now, Europe’s underground storage caves account for 57%. The latest proposal from the European Commission is for each country to reach 80% by 1 November. Germany has set a target of 80% by 1 October and 90% by 1 November.
Analysts at the Bruegel think tank in Brussels have warned that Bulgaria, Hungary and Romania will not meet the EU’s 80% target if they continue at the current pace. Whereas, Germany, Austria and Slovakia will find it difficult to hold their own. If he stops supplying gas from Russia.
European governments and utilities have purchased expensive liquefied natural gas, or LNG, from the United States, which is delivered by ship, unlike gas that comes from Russia by pipeline and is generally cheaper. But the war has raised energy prices, fueling record inflation in Europe and helping to keep revenues high for Russia.
Vice Chancellor Robert Habeck said the move to coal was “bitter”, but “it is urgent in this situation”. The government is planning measures to encourage industry and utilities to use less natural gas. Habeck also urged the Germans to save energy.
He said that the use of gas should be further reduced so that more gas can go into storage, otherwise it will cause more problems in winters.
The Dutch government says it will allow coal-fired power stations to operate at full capacity again to conserve natural gas. Despite all those measures, the state of Europe’s gas security is not good. Liquefied gas export terminals are operating at full speed in energy producing countries such as the US and Qatar.
At the same time, Dmitry Peskov, a spokesman for the Kremlin’s office of the Russian President, said, “We have gas and we are ready to give it as well.” But Europe is responsible for repairing the equipment. We will start supplying gas to them once they get the equipment done after repairing them. Russia supplies gas to Germany through the Nord Stream One pipeline, from where it goes to other countries. Since last Thursday, 60 percent less gas is being supplied than normal days.