Europe Might Face Power Shortages in Winter Unless Russia Boosts Gas Supplies - Saxo Bank
20:45 GMT 05.10.2021 (Updated: 13:59 GMT 05.08.2022)
© AP Photo / Matt DunhamVehicles crawl along a road as heavy snow falls in south east England
© AP Photo / Matt Dunham
BRUSSELS (Sputnik) - Europe might see electricity supply cuts and rationing this winter unless Russia increases gas supplies, given the domestic reservoirs are full, Ole Hansen, head of Commodity Strategy at Saxo Bank, told Sputnik on Tuesday.
"Unless Russia is holding back gas supplies in order to force through an acceptance of the NS 2 [Nord Stream 2] pipeline, we expect Gazprom will increase supplies once domestic facilities have been filled, expected to [be] around the end of this month. If not, and given the competition with Asia, prices could stay elevated into the winter months with a colder than normal winter carrying the risk of supply cuts and rationing," Hansen said.
The situation is further exacerbated by Chinese state energy companies which receive orders to purchase fuel at any prices, the strategist noted.
"An overstimulated global economy has driven a surge in power demand around the world, not least in China, which is facing the prospect of blackouts and power-rationing in heavy consuming industries," Hansen added.
Faced with a looming energy crisis, Europe has on multiple occasions accused Russia of sabotaging gas supplies. In September, candidate for the German chancellery from the Greens, Annalena Baerbock, said Russian gas giant Gazprom was purposefully low-cutting gas supplies to Europe in violation of the existing contract. The European Parliament also appealed to the European Commission for an investigation into the role of Gazprom in the gas price surge.
The Kremlin has since denied all the allegations, saying Gazprom is fully complying with all its obligations and even boosted its exports to several countries over the past months. The German Energy Ministry confirmed that Gazprom is fulfilling its obligations stipulated by supply agreements.