Europe may avoid a gas crisis this winter

According to Trafigura Group, one of the world’s largest exchange companies specialized in commodity trading, Europe may avoid a natural gas shortage this and the following year. This outlook is mostly driven by relatively mild weather settled in the eurozone over the past few weeks.

Jeremy Weir, Chief Executive Officer of Trafigura, outlined that European gas reserves will be reduced only by two-thirds this winter if, first, weather remains stable and moderate, and second, flows of Russian gas continue to come into Europe.

Thus, in Weir's opinion, the region will have enough resources for the upcoming heating season and even will save some for the next year in order to avoid a possible crisis again.

Besides, mild weather conditions settled in Northwest Europe in the second half of the fall also contributed to a sharp fall in gas prices, which hit record highs during summer. This situation is profitable for Trafigura, as the company has significant gas storage in Europe.

In his announcement, Weir added that previously Europe has attempted to refill its reserves with liquefied natural gas, a cold fuel, which is required to be transported via ships rather than pipelines.