The EU is organizing to face the natural gas shortage

The EU is preparing for a possible interruption of natural gas supplies from Russia in 2023, but is ready with contingency plans. The Commission stresses the need for the EU to prepare for the energy transition and not to become too dependent on a single supplier.

Share:

European Commission for Energy Kadri Simson says in an interview with S&P Global Commodity Insights on April 15 that the European Union considered it “possible” that Russia would cut off its natural gas supplies in 2023. But that the bloc is ready with contingency plans, adding that the EU did not see the need to import Russian liquefied natural gas(LNG).

Serious risk of gas shortage next winter

Simson points out that the EU has solidarity agreements, which means that member states can support their neighbors in the event of a natural gas shortage. However, it also points out that Russia has no alternative supply routes for its gas sales. The EU Council formally adopts a regulation on March 30 that extends member states’ voluntary 15% gas demand reduction target for one year until the end of March 2024, warning of a “serious risk” of gas shortages next winter due to tight market balance and concerns about a complete shutdown of Russian gas supplies.

Simson states that Russian LNG imports are “not necessary”. Last year, companies that purchased Russian LNG did so primarily from countries that never received a Russian pipeline, so they were not directly affected by the pipeline shortage. Simson added that if Russian LNG is not needed for security of supply, governments can restrict access to LNG terminals.

A need for critical raw materials and clean technologies

There are currently no sanctions at the EU level targeting the import of Russian gas and LNG, although some countries, particularly in the Baltic region, have already introduced bans. EU energy ministers agreed on 28 March to add a new clause to the EU’s planned gas decarbonisation package. It would give member states the option of restricting gas and LNG imports from Russia. Following a meeting in Brussels, the EU Council said it had added a “safety clause” allowing member states to take “proportionate measures” to temporarily limit imports from Russia and Belarus.

Simson noted that accelerating the clean energy transition will create a need for critical raw materials and access to clean technologies. The EU must not end up being too dependent on a single supplier and needs a network of trusted partners. She added that the Critical Raw Materials Act and other EU initiatives to build alliances on critical mineral supply chains will have to be fast enough to meet the demands of the energy transition because they have no time to waste.

Several international agencies have echoed warnings by Teresa Ribera, Vice-President of the European Commission, about commercial risks related to Chinese competition, emphasizing the EU's refusal to engage in a price war.
The European Bank for Reconstruction and Development lends €400 million to JSC Energocom to diversify Moldova's gas and electricity supply, historically dependent on Russian imports via Ukraine.
BRICS adopt a joint financial framework aimed at supporting emerging economies while criticizing European carbon border tax mechanisms, deemed discriminatory and risky for their strategic trade relations.
The European Commission is launching an alliance with member states and industrial players to secure the supply of critical chemicals, amid growing competition from the United States and China.
Trade between Russia and Saudi Arabia grew by over 60% in 2024 to surpass USD 3.8 billion, according to Russian Minister of Industry and Trade Anton Alikhanov, who outlined new avenues for industrial cooperation.
Meeting in Rio, BRICS nations urge global energy market stability, openly condemning Western sanctions and tariff mechanisms in a tense economic and geopolitical context.
Despite strong ties, Iran's dependence on oil revenues limits its ability to secure substantial strategic support from Russia and China amid current international and regional crises, according to several experts.
Egypt’s Electricity Minister engages in new talks with Envision Group, Windey, LONGi, China Energy, PowerChina, and ToNGWEI to boost local industry and attract investments in renewable energy.
The potential closure of the Strait of Hormuz places Gulf producers under intense pressure, highlighting their diplomatic and logistical limitations as a blockage threatens 20 million daily barrels of hydrocarbons destined for global markets.
Budapest and Bratislava jointly reject the European Commission's proposal to ban Russian energy supplies, highlighting significant economic risks and a direct threat to their energy security, days ahead of a key meeting.
Libya officially contests Greece's allocation of offshore oil permits, exacerbating regional tensions over disputed maritime areas south of Crete, rich in hydrocarbons and contested by several Mediterranean states.
Hungary, supported by Slovakia, strongly expresses opposition to the European Commission's plan to phase out imports of Russian energy resources, citing major economic and energy impacts for Central Europe.
Israeli military strikes on Iran's Natanz nuclear site destroyed critical electrical infrastructure but did not reach strategic underground facilities, according to the International Atomic Energy Agency (IAEA).
The French president travels to Nuuk on 15 June to support Greenlandic sovereignty, review energy projects and respond to recent US pressure, according to the Élysée.
Kazakhstan has selected Rosatom and China National Nuclear Corporation to build two nuclear power plants totaling 2.4 GW, a decision following a favorable referendum and coinciding with Xi Jinping’s upcoming strategic visit.
Israeli strikes against Iranian nuclear sites disrupt US-Iranian talks on the nuclear deal. Tehran now considers canceling the upcoming negotiation round in Oman, heightening regional economic concerns.
Facing alarming breaches of uranium enrichment thresholds by Iran and explicit existential threats, Israel launches targeted military strikes against Iranian nuclear infrastructure, escalating regional tensions dramatically.
The Kremlin has confirmed that Vladimir Putin aims to help resolve the nuclear dispute between the United States and Iran, leveraging strengthened strategic ties with Tehran.
President Lee Jae-myung adopts an energy diplomacy rooted in national interest, amid a complex international landscape of rivalries that could create challenging situations for the country and its energy businesses.
Paris and Warsaw held a bilateral workshop in Warsaw to strengthen coordination on electricity infrastructure investments and supply security under the Nancy Treaty.