The crisis in the gas market is getting worse
21:31
Europe imports about 30 percent of its gas from Russia. Nominally, it is about 180-200 billion m³ of gas per year. It will be difficult to fully replace Russia as a gas supplier, because the current situation on the gas market has caused major perturbations related to, inter alia, gas supply. The Covid-19 pandemic in the first months of 2020 caused a dramatic drop in commodity prices on stock exchanges. This also translated into the investment process of energy companies: they began to invest less in production, searching for new deposits and maintaining the current production. As a consequence, after a few months, declines in the supply of hydrocarbons were noticeable.
"As a result, there was a deficit and a very large excess of demand over the supply," Mariusz Marszałkowski, an expert at BiznesAlert, said.
This is one of the elements that currently affect the situation in the global hydrocarbon market.
"In a situation where there is no LNG on the market or its prices are dramatically high, market problems arise in countries such as Spain, Great Britain or the Netherlands. There are only five major LNG producers in the world while the trend of LNG imports has increased dramatically in recent years. This also translates into the current difficult situation in the gas and oil market in Europe," Marszałkowski added.
