On Tuesday 24 October, the European Agency for the Cooperation of Energy Regulators (ACER) published its annual report on the internal gas market in 2022 and 2023.
This document, which examines recent developments on the European gas markets, firstly highlights the relative resilience of the European Union’s integrated gas system in the face of the energy crisis. However, this has been accompanied by problems such as congestion at liquefied natural gas (LNG) terminals and pipelines, price rises and disparities between hubs.
After the shock of 2022, the balance between supply and demand was restored, thanks to constant LNG imports and a fall in gas demand, which helped to stabilise prices. However, global gas supply remains tight, exposing prices to unpredictable developments, not least because of growing demand for LNG in China.
The document also highlights the EU’s increased dependence on LNG and the enhanced role of underground storage in security of supply.
Finally, the report stresses the importance of reducing demand for conventional gas in order to achieve the EU’s decarbonisation objectives. However, the transition should be managed smoothly in order to preserve economic activity and the security of supply offered by LNG.
Read the report: https://aeur.eu/f/9a5 (Original version in French by Nithya Paquiry)