European gas security concerns are returning to the forefront as TTF prices climb back above €50/MWh, exposing growing unease over LNG availability, slower storage injections and what some analysts see as years of insufficient preparation for supply disruptions and winter market volatility.
On Friday the 15th of May , the TTF front-month price- the most important EU benchmark for natural gas prices- breached the €50/MWh guard level.
Despite gas stocks slowly increasing, Europe is finally facing the consequences of the shortage of available LNG on the market due to the blockade of the Strait of Hormuz.
European policymakers and energy stakeholders have been “kicking the can down the road” for as long as possible, but the bitter reality of Europe’s energy insecurity is finally biting.
The gap compared to last year’s gas in stock is widening; we are now more than 8 percentage points behind last year’s restocking levels.
The risk is that, as we navigate the summer and approaching autumn, this deficit will only grow, with European anxieties over winter gas supplies pushing prices to unsustainable levels for households and industries.
The lack of energy planning by the EU Commission and most European governments—and their passive stance towards the ongoing turmoil in the Middle East—has been embarrassing.
Honestly, no citizen or business deserves to witness such a lack of preparation ahead of what will likely be the most difficult winter Europe has ever faced in terms of energy security.
Source: Francesco Sassi
