In Europe, the price of gas reached a new record and ignited this Monday, March 7, 2022, by 60%, to more than 300 euros per megawatt hour. This historic record on the European market is reached at a time when sanctions on Russian energy are discussed by the United States and the European Union (EU) in the face of the invasion of Ukraine with the question that torments the ‘spirit. Can we do without Russian gas?
“No, without Russian gas, we would be entering an extreme scenario,” replied the boss of Engie, Catherine Mac Grégor, who speaks in the newspaper Les Echos. According to her, if we immediately stopped our gas purchases from Russia, this would lead to a significant direct increase in prices. Prices which have already doubled in one week, we are at 195 euros per megawatt hour on the wholesale market, against 75 euros in February 2022 just before the Russian invasion. There would be no shortage to end this winter, we could cope by turning to other countries, but we would pay dearly, she estimated.
Fear of disruptions to exports from Russia, which provides 40% of European gas imports, pushed Europe’s market benchmark, the Dutch TTF, to a new record high of 345 euros per megawatt hour (MWh). This Monday, February 7, 2022 around 09:05 GMT (10:05 in Paris), he won 45% to 280 euros.
“On the other hand, it would be problematic for next winter, we would run out of gas because in fact, the filling of stocks is done in spring and summer for the following winter. In this context, it would be difficult to find the necessary volumes. Which, concretely, would mean that next winter, we will have to reduce our gas consumption, lower our heating, limit certain industries, ”warned Catherine Mac Grégor.
In the wake of energy prices, those of Russian-produced metals rose, with aluminum topping $4,000 a tonne for the first time while copper and palladium hit new all-time highs at 10 $845 per ton and $3,442.47 per ounce respectively.
Faced with this situation, all eyes are on other energies, in particular renewable energies, such as wind, solar and biomethane. This is the avenue that the Commission is working on. The objective being to avoid using coal, which is very polluting, but also because we are very dependent on Russian coal, even more than for gas!
Moctar FICOU / VivAfrik