Fatih Birol, International Energy Agency (IEA) Chief, warned of a possible shortage in energy throughout the coming winter season, due to the shortage in the new liquefied natural gas in the market and a prediction of an increase in China’s intake this year.
Birol said during the Munich Security Conference that the European governments made a lot of correct decisions throughout last year to secure energy supply, such as building natural gas plants to replace the Russian gas.
He also added that the European governments were lucky, since the mild winter this year decreased the demand. In addition to the economic slump in china, which lead to a decline in its consumption in 40 years.
“In terms of this winter, we can say we are past the hard times. If we did not face any surprises, we will surpass it, with a few damages,” he continued. “The question remains, what will happen next winter?” he added.
Birol also said that he expects a production of 23 billion extra cubic meters of liquefied natural gas this year. He added that with any slight increase in the economic outcome, as a result of easing the pandemic restrictions, will most probably lead to a Chinese engulf of almost 80 percent of the extra gas.
“Despite the fact that we have enough importing plants for liquefied natural gas, most probably there will not be enough gas for importing. Therefore, the situation will not be easy for Europe next winter,” he added.
He also pointed out to the fact that this situation will lead to a further increase in prices, adding “we should not relax or celebrate just yet.”
Birol clarified that with the existence of endeavors to upgrade new gas plants, its working will not be possible for years.
He further added that families and companies need to put more effort in saving gas, and there is a need to work on acquiring more renewable energy.
Birol also warned the countries that decided to gradually get rid of nuclear power, to reconsider if this is the best time for implementation. “For example, the temporary supply of the last nuclear power plants in Germany until April was a step forward in the right path” he said.
