Fatih Birol, the head of the International Energy Agency, referred to the critical situation of the European gas market in an interview and stated that the disruption in the Strait of Hormuz has severely affected this market. He noted that Europe is facing gas reserves lower than the historical average as it approaches the winter season, which could lead to increased gas prices and further difficulties for the continent.
Impacts of Disruption in the Strait of Hormuz
Birol announced that before the tensions in the Strait of Hormuz, about 20 percent of the world's liquefied gas consumption passed through this route, a significant portion of which was supplied by Qatar. However, the actions of the Islamic Republic to disrupt the flow of LNG from this strait have severely impacted global markets and significantly increased gas prices. According to Birol, even if peace is established immediately after these tensions, Europe will still face serious challenges in energy supply.
Status of Gas Reserves in Europe
According to reports, the natural gas reserves of the European Union are only 72 percent full, while this figure is usually close to 90 percent. This significant reduction in gas reserves has raised serious concerns for European countries. In this context, the energy ministers of the European Union are considering the possibility of energy consumption quotas for households and businesses.
Birol also pointed to the increasing competition between Asian and European countries in gas imports and stated that this competition and political uncertainties in the energy sector affect market conditions. He emphasized that the current critical situation may also exacerbate tensions in the Bab-el-Mandeb Strait, which could lead to increased volatility in the energy market.
Birol expressed disappointment that governments had not taken necessary actions earlier and are now trying to adopt rapid measures. He added that Middle Eastern countries are constructing new pipelines and increasing the capacity of alternative pipelines to the Strait of Hormuz, but these actions should have been taken sooner.
