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Winter isn’t over yet, but Europe prepares for the next season


Germany opened a new LNG terminal in December as part of efforts to phase out Russian gas

Germany opened a new LNG terminal in December as part of efforts to phase out Russian gas.

So far, Europe has weathered the energy crisis following Russia’s invasion of Ukraine, but businesses and households are already thinking about how to weather next winter.

Mild weather, government aidgas storage is operating at full capacity and energy Imports from other regions have helped Europe to limit economic damage caused by war.

Outside the western industrial city of Dortmund in Germany, the Veltins brewery has adapted using reusable bottles, converted part of its gas furnace to use fuel oil, and spent 30 million euros (32. 5 million USD) to reserve raw materials.

Veltins spokesman Ulrich Biene told AFP: “We don’t have to reduce production.

Germany, which was heavily dependent on Russian gas imports before the war, provided huge aid to consumers, trying to fill storage facilities and looking for new energy sources as Moscow stopped mining. waterfall.

The government said last week that it expects Europe’s largest economy to avoid a recession this year, although data on Monday showed a contraction in the last three months of 2022.

To boost supplies for the winter, Germany and neighboring EU countries have purchased LNG from Qatar and the United States, which is more expensive than Russian gas brought in through the pipeline.

According to the Institute for Energy Economic and Financial Analysis (IEEFA), LNG imports in Europe have increased by 60% in 2022 compared to the previous year.

As a result, “the worst-case scenarios for winter 2022/2023 have not occurred,” said Fabian Skarboe Ronningen, senior analyst for electricity market research at Rystad Energy.

‘Absolutely extraordinary’

Europe’s gas reserves are now at 72 percent of capacity – double this time last year.

With temperatures so far this winter milder than usual, European consumers have turned on their heating later—keeping rising bills under control, ensuring stock levels stay at the right level. High.

Demand about nature Air fell 12% in 2022 after the Russian invasion in late February compared to the 2019-2021 average, according to Brussels-based consultancy Bruegel.

Bruegel researcher Simone Tagliapietra said: “I think it’s absolutely phenomenal.

Winter isn't over yet, but Europe prepares for the next season

Natural gas prices in Europe.

Supply received another boost from the progressive return of several decommissioned French nuclear reactors.

After the Russian invasion, Europe’s energy prices hit record levels—passing 300 euros per megawatt-hour in August before slumping after governments rushed to ramp up storage.

Europe’s main futures contract has now stabilized at around 55 euros—still double what it was before the COVID-19 pandemic.

However, household bills have yet to fall as wholesalers buy goods months in advance, leaving consumers struggling to pay as inflation soars.

Dora Jesus, 42, a Londoner on state pension, whose bills have risen by more than £100 ($123) from £82 previously, said: “Even next month will be a showdown. painting”.

‘Gasoline race’

Some analysts say a return to normal prices could take years.

“All eyes are on the winter of 2023/2024, noting that Russian supply will remain out of the equation,” said Ronningen.

“Europe will be more dependent on LNG in 2023, as this is the first year of very low volumes coming from Russia,” he said.

And if Asian demand picks up again, “the competition between Europe and Asia for LNG will be even more intense, which could lead to higher prices than we see today.”

For Tagliapietra, “Europe is in a better position than it was last year, because last year Europe found a new energy equilibrium after the shock of cutting off Russian gas supplies.”

He said demand must be controlled as much as possible while more renewable energy is added to the system.

“I think it’s very important for European countries to be coordinated” in filling up the tanks because “we need to avoid the gas rush we saw in the summer,” Tagliapietra said.

“The more we coordinate, the more money we save.”

© 2023 AFP

quote: Winter isn’t over yet, but Europe gears up for the next season (2023, January 31) get January 31, 2023 from https://techxplore.com/news/2023-01-winter-europe- braces.html

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