Nord Stream 1 pipeline Photo: AFP
Russian energy giant Gazprom closed one of its main gas pipelines to Europe on Saturday, adding to fears of a looming energy crisis and a potential recession in Europe, with Chinese experts saying the continent will bear the brunt. The US-led Western economic war against Russia pointing to being set up.
Gazprom on Saturday canceled the restart of gas flow through the Nord Stream 1 pipeline, citing an oil leak in a turbine, Reuters reported. European countries had hoped to resume pipeline flow as they struggled to contain the surge in gas prices, according to the report.
The latest development has caught the world’s attention. Many have expressed concern about the impending energy crisis in Europe next winter, potentially exacerbating the growing economic woes in one of the world’s largest economies.
The Wall Street Journal reports that Europeans fear a “long and cold” winter if Russia pushes the button to suspend natural gas supplies. CNBC reports that the gas crisis is “shaking the economic outlook for Europe.” To make matters worse, some media reports say gas shortages across Europe could last for several winters.
The EU has actively sought alternatives to Russian gas, but the limited supply of liquefied natural gas (LNG) for sale and the lack of European import terminals has led to the complete abandonment of Russian gas. cannot fundamentally solve Europe’s energy crisis. A research fellow for international strategy told the Global Times on Sunday.
“If Russia cuts supplies entirely, it will leave a gap of about 130 million cubic meters per day even as the EU tries to find replacements from countries such as the UK and Norway.
According to Chen, the EU’s international shipping capacity has been stretched to the limit and its own energy storage plan will not be able to fully fill the gas supply gap.
Hong Tao, a professor at Beijing Institute of Technology, also told the Global Times on Sunday that any prolonged shutdown of Nord Stream 1 would undoubtedly lead to a “fatal energy crisis” in Europe.
“Because of moves such as reducing gas imports from Russia and setting price caps on global purchases of Russian oil, Europe’s efforts to reserve oil and natural gas are likely to continue until embargoes and price caps are put on the market. It will not finally solve the serious energy problem because it violates the rules of , it will only exacerbate the energy shortage,” Hong said.
Analysts say further cuts in Russia’s energy exports to Europe are expected to worsen the economic situation in the EU, causing further problems such as higher commodity prices, production difficulties for firms and higher costs for firms. increase.
Fluctuations in Russia’s energy supply have already pushed gas prices in Europe to considerable levels. European gas prices have increased nearly fivefold between August 2021 and his June of this year, according to data in a CNBC report.
The European Commission had previously forecast the EU economy to grow by 2.7% this year and 1.5% next year, but said a complete cut off of gas supplies from Russia could trigger a recession in the second half of 2022. The report estimates that
On the other hand, analysts say the US has been active in escalating the dispute between Europe and Russia for its own interests, as US companies have benefited greatly from the EU’s struggle to find alternative energy supplies. said to play a role.
“In the end, the United States has reaped the most from the energy crisis by opening up huge markets to U.S. gas suppliers, increasing its dominance over Europe, and hurting Russia’s key exports.” told Global Times on condition of anonymity.
As of June, Refinitiv data shows that the US exported about 57 billion cubic meters of LNG, of which 39 billion cubic meters (68%) went to Europe. This compares with his 34 billion m3 or 35% of his LNG exports shipped to Europe in 2021, when his LNG exports to the US totaled about 97 billion m2, according to Reuters. .
Mr. Chen said the side effects of Europe’s decision to follow in the footsteps of the United States are growing rapidly. Not only has the quality of life of people in the EU plummeted, but it has also disrupted global energy, bulk commodity and financial markets.
