PODCAST: Europe, German chemicals face gas supply crisis, price hikes
ICIS (LONDON)–Europe’s chemical industry, particularly in Germany, could face natural gas rationing and rocketing prices if Russia makes deeper cuts to supplies, and a severe winter hits the continent and Asia.
- Europe already faces supply crisis after Russia cut gas supplies to record low
- Germany supplies cut by 60% in June
- European gas prices have rocketed
- Gas storage levels better than last year but worse than 2019
- Germany has raised alarm level, boosting coal power capacity
- German gas prices could rise by 30-40% for some buyers, triggering bankruptcies
- If Russia completely cuts gas, emergency measures could ration gas to industry, consumers
- Expect severe gas restrictions if Russia cuts supply and winter is cold in Europe, Asia
- Crisis can be avoided with mild winter, demand controls
- Gas cuts could cause industrial recession in Germany
- Chemical industry must prepare for likely gas cuts
- Longer-term gas crisis will drive local production, recycling
In this Think Tank podcast, Will Beacham interviews ICIS senior gas markets reporter Aura Sabadus, ICIS Insight Editor Nigel Davis and Paul Hodges, chairman of New Normal Consulting.
Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.
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