LONDON (Reuters) – The natural gas situation in Europe this winter will be well averted by efforts to cut consumption and ample inventories, said Ben Lachcock, co-head of oil trading at Singapore-based global trading firm Trafigura on Thursday. But he warned that next winter could make things worse with a major shortage of natural gas. Speaking at an energy industry event in London.
A 25% to 35% reduction in industrial demand for natural gas this winter, ample inventories and an influx of liquefied natural gas (LNG) will help, said Luckock. However, Russia’s natural gas supply to Europe may be cut off next winter, and inventories will be greatly reduced, requiring a large amount of additional natural gas to be replenished. He pointed out that the construction of a large-scale infrastructure to promote the regasification of LNG will not be in time.
“If the situation in Russia doesn’t change, things don’t look like they’re going to settle,” Mr. Luckock said.
At the conference, similar points were made one after another by the CEOs of Swiss oil trading company Bittle and Gumber. It was also shared that the current European LNG infrastructure would not be able to make up for the loss of Russian gas supplies, which would keep gas prices high.