The European Union has been warned of the need to fully prepare for a potential gas crisis, according to a report from the European Court of Auditors. Despite emergency measures taken in response to Russia’s manipulation of gas supplies, the benefits of these actions are not always clear. The report highlights new challenges that the EU must address in order to ensure long-term security of gas supply, such as increased dependence on liquefied natural gas (LNG) and the need to decarbonize gas consumption.
The 2021 crisis saw the EU abruptly abandon Russian gas imports, leading to a supply crisis and subsequent affordability crisis. Wholesale gas prices reached unprecedented levels, prompting EU countries to subsidize gas and electricity prices in order to ease the burden on families and businesses. By the end of 2023, the EU had successfully diversified its gas supply sources, stabilizing prices by early 2024.
The EU’s resilience was tested during the crisis triggered by Russian aggression against Ukraine. While the EU managed to reduce gas demand by 15%, it remains uncertain whether this was solely due to measures taken or external factors such as high gas prices. The report emphasizes the importance of affordability frameworks and warns of member states’ reluctance to sign bilateral solidarity agreements.
Insufficient progress on carbon capture, storage, and utilization poses a challenge to the EU’s long-term security of gas supply. With climate objectives in mind, reducing carbon emissions from gas consumption will become increasingly important in achieving the EU’s climate targets by 2050.
In summary, despite emergency measures taken in response to Russia’s manipulation of gas supplies, there is still work that needs to be done for a new potential gas crisis. The report highlights new challenges that must be addressed in order for long-term security of gas supply. Insufficient progress on carbon capture, storage and utilization poses a challenge for achieving climate targets by 2050
