China News Service, December 19 (Xinhua) According to a Bloomberg report on the 18th, affected by the situation in Ukraine, the European energy crisis has lost about 1 trillion US dollars due to rising costs, and the most serious crisis in decades has just begun.
According to reports, after this winter, Europe will have to replenish its natural gas reserves as almost no Russian pipeline gas will be supplied to Europe, which will intensify competition in the LNG market.
While more liquefied natural gas (LNG) import terminals are coming online, new capacity in the US and Qatar won't come online until 2026, so gas prices won't get a break from high prices.
European think tank Bruegel said the state of emergency could last for years despite more than $700 billion in aid from European governments to help businesses and consumers cope with the shock from surging energy costs.
And about half of the EU's member states have debts that exceed a cap of 60 percent of gross domestic product.
"Once you add up all the spending - bailouts, subsidies, etc. - it's an insane amount of money to manage this crisis next year," said Martin Devenish, a director at consultancy S-RM. It will also be more difficult.”
Although European countries urgently replenished natural gas inventories in summer, which eased some of the supply crunch, the cold weather this winter is the real test of the region's energy system.
Last month, Germany's energy regulator, the Federal Network Agency, warned that German households and small businesses had failed their first gas-saving test.
A reduction in gas consumption of at least 20% is needed to avoid gas shortages in the coming months, the regulator noted.