The International Energy Agency (IEA) has urged Russia to increase its natural gas production to stabilize soaring energy prices in Europe.
CNN Business reported on 23rd (local time) that the IEA has called on Russia to increase its gas supply so that it has enough gas to meet Europe’s winter heating needs.
The IEA notes that Russia is meeting its agreements with European importers, but that exports have also declined from 2019.
Russia is Europe’s largest supplier of natural gas.
Russia’s state-owned energy developer Gazprom said this year’s natural gas exports are approaching records.
The IEA warns that gas markets in Europe might not be able to handle unexpected supply disruptions and cold snaps, especially later this winter.
Inventories in Europe and a rapid recovery in demand, including in Asia, have led to a sharp rise in natural gas prices. Electricity prices in European countries are soaring.
Due to rising coal and carbon prices as well as gas prices, electricity tariffs in European countries are the most expensive in the last decade.
German and Spanish electricity prices were three to four times higher than two years ago in September, according to IEA figures.
Natural gas production in Europe has continued to decline, driving up gas and electricity prices. A shortage is likely as a result, according to a recent article in the Wall Street Journal (WSJ).
Energy shortage is expected to intensify as European energy producers plan to not only reduce production in the future, but also shut it down in the long run.
By 2050, Denmark plans to end oil and gas production, while the Netherlands is reducing production in Groningen, which was once the world’s largest gas field, to avoid earthquakes.
The newspaper warns that Germany is committed to ending its reliance on nuclear power and that the move to reduce greenhouse gas emissions in continental Europe will exacerbate the shortage of energy.
As Europe’s interest in natural gas development declines, its dependence on natural gas from Russia, the U.S., and Norway increases.
Europe has high expectations for Azerbaijan’s liquefied natural gas production, but production is believed to be insufficient.
According to the newspaper, U.S. energy developers have also reduced production and drought-stricken Brazil is generating electricity from imported gas instead of hydroelectric power, causing a shortage of gas supplies.