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The uncertain economic and political situation is among the reasons for a large shortage of natural gas, the imbalance in demand and supply led to a significant increase in the prices of the raw material, reports the consulting company "Cofas".

The experts from "Cofas" foresee several main challenges related to the gas market in the world and in Europe. 

The emergency plan of the EU for winter - up to 19 degrees in offices and shops

First of all, the risk of distribution of quantities and blackouts, especially in Europe, should be taken into account.

Several segments of the energy-intensive industries (cement, refining, chemicals, metal processing, glass and ceramics, etc.) will have to shut down during the winter in Germany and possibly France, even if the level of gas storage in Europe reaches 90 per percent (currently estimated at 60 percent).

In addition, with the unplanned shutdowns of several nuclear reactors in France, the risk of power outages increases dramatically, as the country is an exporter of electricity, BTA informs.  

According to the experts from "Cofas", limiting the demand is one of the answers to deal with the current energy crisis and in Europe this process is already underway.

Another risk for regulated utilities is increases in wholesale electricity prices at the expense of retail prices.

Retail electricity traders operate under government-capped prices, and as such they have to bear the brunt of the difference between higher wholesale prices and lower, capped retail prices.

This can lead to a high rate of bankruptcy due to lack of liquidity.

As European countries try to limit their dependence on the Russian stream, the need to regasify LNG is forcing operators to acquire floating regasification and storage units (FSRUs).

They are designed to store LNG and process it before selling it to consumers.

They can be built in one year, while an LNG terminal needs five years to become operational and is also more expensive.

In Germany alone, three regasification units are expected to dock in the ports of the Baltic and North Seas, with an annual processing of 27 billion cubic meters of gas, according to Kofas.

natural gas