how does geopolitics influence the price of gas?

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FRANCE 2

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PL.Monnier, S. Fouquet, L. Berbey, A.Peyrout, L. De Pavant, J. Blondel, M.Alphaize, E.Noël

France 2

France Televisions

The regulated gas tariff will increase by 8.7% from Wednesday, September 1. The price has risen by more than 15% in a year and a half. Behind these increases are, in fact, global and geopolitical reasons.

Is your gas bill igniting? The reasons are economic, but also geopolitical. On the one hand, China is lacking in energy, on the other, Russia is raising the stakes. It’s the gas war. In question: the recovery of the economy. After a year and a half of epidemics in Asia, the economy is picking up strongly. To cover energy needs, LNG carriers are now in demand. “There is competition on the gas market between Europe and Asia”, explains Francis Perrin, research director at the Institute of International and Strategic Relations.

For its part, China and Beijing are trying to limit their consumption of coal, which is very polluting. Make way for gas-fired power stations, enough to boost prices. Unheard of for at least thirteen years. And Moscow is taking the opportunity to hold back and put pressure on Europe: Russia provides a third of our gas. “They are trying to get a message across, ‘tomorrow you will need more gas and you will need us'”, analysis Thierry Bros, professor at Science-Po. Vladimir Poutine has one goal: to make an underwater gas pipeline under construction essential.

Francis Perrin

Thierry Bros

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