EU prepares to face gas shortage

Earlier this month, the Russian energy company Gazprom turned off gas supplies through the Nord Stream 1 pipeline for maintenance until July 21.

The European Commission is expected to publish a document this week telling member states to “save gas for a safe winter”, it has been reported.

The Commission’s plea to heavily cut gas consumption suggests the EU will face a supply shortage towards the end of this year.

The document, the details of which were first revealed by the Business Post, is expected to outline ways that critical industries in the EU such as health, food, safety, environment, and security will be protected if a gas shortage should occur.

The Business Post reported that gas use may need to be cut by between 10% and 20% in an effort to keep an emergency supply in Europe for the winter if Russia decides to cut gas supply.

Ireland gets around one-quarter of its gas from the Corrib gas field, and the rest through the UK.

The UK’s gas supply comes through a pipeline from Norway, imports of liquefied natural gas (LNG), and two gas interconnectors linking the UK to Belgium and the Netherlands.

Although Ireland and the UK do not directly depend on Russian gas, any supply shocks caused by Russia could have a domino effect for countries such as Ireland.

“Any disruption of Russian gas supplies would maintain upward pressure on European gas prices, with knock-on effects on electricity prices,” said Environment Minister Eamonn Ryan in March, shortly after Russia invaded Ukraine.

In the unlikely event of any gas supply emergency, there is excellent co-operation between Irish and UK gas system operators to maintain security of gas supplies from the UK. 

"This co-operation includes regular testing of emergency plans by the operators.”

Heading into the traditionally sleepy summer period in Brussels, the EU will face new challenges such as a total cut-off from Russian gas and the tightening of monetary policy risks pushing the region into a second recession in two years.

Earlier this month, the Russian energy company Gazprom turned off gas supplies through the Nord Stream 1 pipeline for maintenance until July 21, the Guardian reported. There are concerns that Putin will not turn back on the supply.

Additional reporting by Bloomberg