Russia May Be Losing The Energy War

Russia is facing defeat in Putin’s gas war against the European Union

Aura Sabadus, September 11, 2022 (Atlantic Council)

“…Russian energy giant Gazprom suspended gas exports to Germany via Nord Stream 1 and Russian President Vladimir Putin threatened to cut remaining supplies, but] Putin may have overplayed his hand and could be about to lose his gas war against Europe…[Prices remain very volatile and well above average but have dropped] more than 40% since reaching record highs at the start of September…[and] markets are finding solutions…[S]torage facilities are now at 82% of capacity, already exceeding an 80% target figure for October 1 set by the EU …[even though] Russian supplies to Europe are now less than a quarter of what Gazprom exported a year ago…

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…[Record high prices have prompted large industrial consumers to curb demand] nearly 22%…The EU has recommended a 15% demand reduction over the five-year average between August 2022 and March 2023…In August alone, overall household demand appears to have dropped some 10%, while European consumers are rushing to install solar panels, heat pumps, or stockpile firewood… Europe has decisively turned to global supplies of liquefied natural gas with imports of LNG now at record levels…These volumes are set to soar further…

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Two floating storage and regasification units (FSRUs) have already docked in the Netherlands…[Germany is] expecting to set up three FSRUs until March 2023…[and] another three by the end of 2023…[Estonia and Finland FSRUs] could be in operation as early as December 2022…[and a Poland pipeline could] start bringing Norwegian gas by the start of October 2022…[France has offered] to swap natural gas for electricity in case of shortages this winter…EU policy-makers are currently under tremendous political pressure…but Europe must ultimately ensure that Russia is disarmed for good.” click here for more

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