Europe’s energy crisis could worsen next year: International Energy Agency

The European Union has enough gas for the winter amid an energy crisis, but could face a severe shortage next year if Russia cuts supplies further, the International Energy Agency (IEA) said on Monday.

Despite Russia slashing gas deliveries this year, Europe has averted a severe shortage and started the winter with brimming gas storage tanks.

But next year may pose an even tougher test than the energy crunch that has this year hiked fuel bills for European households and forced industries to temporarily close to avoid crippling gas costs.

"How severe this crisis will be and how long it will last greatly depends on how the energy crisis will develop," said Michael Groemling at the German Economic Institute (IW).

The bloc faces a potential gas gap between supply and demand of 27 billion cubic meters in 2023, according to the report.

Such a situation could occur if Russia’s gas deliveries drop to zero and if China’s LNG imports rebound following a pandemic-related decline in 2022, the authors explained.

“The European Union has made significant progress in reducing reliance on Russian natural gas supplies, but it is not out of the danger zone yet,” IEA Executive Director Fatih Birol said in a statement.

“Many of the circumstances that allowed EU countries to fill their storage sites ahead of this winter may well not be repeated in 2023,” Birol said.

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