Page 5 - FSUOGM Week 42 2022

FSUOGM COMMENTARY FSUOGM

lower consumption – but also energy conserva- this winter with the amount of gas that it has
tion – avoiding energy use when it is not vital. accumulated in storage, but volumes will like-
For example, such measures include reducing ly be heavily depleted. If for example, Europe
lighting and lowering thermostats in public leaves this winter with its storage facilities filled
buildings and closing non-essential infrastruc- to only 20%, it will have to inject some 70 bcm
ture. Households are conserving energy anyway, of gas to reach 90% utilisation by next winter.
regardless of what instructions governments Prices so far have been high but also very
make, because of high prices. volatile. With unreliable Russian supply already
Governments must also take a more prag- at an all-time low, next year is likely to see a lot
matic approach to expanding the use of alter- less volatility, but prices will still be high, further
native fuels and energy sources to gas wherever exacerbating the economic crisis.
possible. That means Germany delaying plans to And not much extra LNG supply will come
close down its remaining nuclear power plants online in the meantime, or beyond next year.
(NPPs) at the end of this year. It also means New liquefaction plants coming online in the
burning more coal and oil, despite the envi- next few years are mainly small in scale, save
ronmental cost. Failure to take such steps will for Russia’s Arctic LNG-2 plant, officially due to
further worsen the coming recession, making it start up in 2023-2024. But sanctions have made
harder for countries to invest in decarbonisation the outlook for that project very unclear. Mean-
further down the line. while, large-scale plants such as North Field
East in Qatar, Golden Pass, Plaquemines and
This winter is not the last Corpus Christi Stage 3 in the US, and Canada
Europe must also prepare for next winter as LNG, are not expected to be operational until
well as this one. Europe will make it through 2025 or later. ™

Week 42 20•October•2022 www. NEWSBASE .com P5