The Strategist

TotalEnergies’ head warns of possible gas shortages in Europe in winter

07/10/2023 - 10:07

According to Patrick Pouyanne, gas would have to be imported at a higher cost.

Europe may experience a gas scarcity over the upcoming winter, said Patrick Pouyanne, CEO of TotalEnergies in France quoted by CNews TV channel.

"As for gas, storage facilities will be full in October, but if the winter in Europe is cold, these stocks on the continent will not be enough to meet demand throughout the season," Pouyanne cautioned.

He also noted that the cost of gas imports would need to increase. There are no fair prices in a market where everything is based on supply and demand, according to TotalEnergies CEO.

Most gas shortages in Europe are being filled by expensive liquefied natural gas (LNG) shipped by sea from Qatar and the United States. Because of the demand for LNG, Europe and Asia are in a price war for liquefied natural gas, which has led to a switch to other fuels like coal.