Dan Jørgensen, the European Union's energy commissioner, warned in a letter to the energy ministers of the member countries of this union about the energy price crisis caused by recent wars and turmoil in oil and gas markets. He emphasized that this crisis is related to supply issues and that member countries must take actions to reduce natural gas demand.
Europe's Heavy Dependence on Energy Imports
Europe is significantly dependent on oil and gas imports, with suppliers outside this union providing about 80 percent of the gas needed by member countries. As a result, the sharp increase in global energy prices following the U.S. and Israeli wars against Iran and disruptions in traffic through the Strait of Hormuz has severely impacted these countries. Before the onset of the Middle Eastern conflicts, about 20 percent of the world's liquefied natural gas (LNG) passed through the Strait of Hormuz.
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Jørgensen emphasized that Europe has not yet faced a supply shortage but is struggling with skyrocketing prices. This situation has created difficulties for some countries in filling gas storage facilities before winter and the peak demand for heating. Data from the European Gas Infrastructure Association shows that gas storage levels across the EU have reached about 70 percent, which is lower than the same period last year.
Proposed Actions to Improve the Situation
Dan Jørgensen noted that the European Union is currently better prepared for winter 2021 than it was in that year, thanks to increased LNG import capacity, greater use of renewable energy, and reduced gas demand. In that year, Russia had limited gas supply to Europe by reducing deliveries. Jørgensen urged the governments of member countries to enhance their preparedness for the winter season and take necessary actions.
He called on member countries to take actions whenever necessary to ensure the continuation of gas injection into storage facilities or to reduce gas and electricity demand. According to Jørgensen, these actions could include limiting ambient temperatures in public buildings, preventing heating in outdoor spaces, and turning off unnecessary lighting in public places.
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