Though Europe has filled its reserves of natural gas for this winter, the clock is already ticking to secure energy for the coming years, which are expected to remain dogged by threats of severe shortages,
The European Union’s gas storage is around 95% full, and many analysts say the continent might avoid an energy calamity this winter. But procuring gas for coming winters is widely anticipated to become more difficult for European countries now that they are mostly cut off from Russian supplies and global competition is growing for finite cargoes of liquefied natural gas.
There is little additional LNG coming to the market until around 2026, when planned projects in the U.S. and Qatar come online, and Europe likely will compete for tight supplies over the next few years.
Some companies in Germany, Europe’s manufacturing engine, are worried about having enough energy for the latter part of the decade. German companies including the chemical producer
SE and the bailed-out utility
SE have held talks in recent weeks with America’s LNG exporters and others about potential gas-supply deals likely beginning after mid-decade, according to people familiar with the discussions.
BASF, which operates this plant in Germany, is one of the country’s biggest users of natural gas.
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Sean Gallup/Getty Images
After Russia’s invasion of Ukraine, some European companies signed contracts for U.S. LNG. Now businesses that rely on gas are saying the continent will need more of it for years to come.
The negotiations are indicative of elevated energy-security concerns, the people said, but are complicated because while many in Europe seek gas for five to 10 years, some company and government officials are reluctant to sign longer-term supply contracts. Germany and other European nations have set ambitious targets to reduce fossil-fuel consumption dramatically, and companies are worried they could be on the hook for gas they no longer need.
BASF and Uniper…
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