European gas market faces another uncertain year

The lack of Russian gas and LNG capacity constraints threaten Europe with a shortfall of supply

Europe’s gas market looks set for another volatile year as historically low storage inventories and weak Russian flows persist. In response, the continent has already upped its LNG take to record levels, while the supply squeeze could also impact local production prospects and the future of long-term contracts. Nevertheless, IEA executive director Fatih Birol criticises those linking Europe’s gas price volatility with the energy transition, saying that the situation is a result of “a natural gas market crisis”. European gas prices are expected to be “highly volatile” in 2022, says Michael Stoppard, chief strategist, global gas at information provider IHS Markit, adding that the question is w