Energy experts warn that Europe could suffer a power outage in the coming months as average temperatures drop.
Goldman Sachs analysts at investment banks said Europe has enough gas to survive the winter, but storage will be seen in 2018 if temperatures drop and demand increases. May be below record lows.
If this happens, “there is a high probability of a power outage,” a bank analyst said.
He also warned that even if Russia increased its supply to the region, gas prices could double in northwestern Europe.
This is before taking into account potential conflicts in Eastern Europe.
Both Russia and NATO are increasing their military presence in the region.
On Monday, a spokesperson for Prime Minister Boris Johnson said Russia would make a “strategic mistake” if it took “unstable behavior” in Ukraine.
Number 10 warned of “significant consequences” and indicated that the United States and the United Kingdom could impose sanctions on Russia.
If sanctions on Russia hit the gas supply, the region would get about 35% of the gas from the country, which could also hit the European gas market.
“The current tight European gas balance will discourage the EU from blocking the flow of existing gas from Russia,” Goldman said.
However, he warned that if sanctions were imposed on gas, gas prices could reach “higher levels” than the record set in mid-December.
The Times reported on Monday that authorities were concerned that Russia could use gas supplies as a weapon in the event of a conflict in Ukraine.
They said Britain only gets 3% of gas from Russia, but if Russia limits supply, Britain’s gas prices will be pushed up.
Gas prices are already rising rapidly, hitting millions of households from the beginning of April.
Energy regulator Ofgem will announce a new energy tariff cap for April-October early next month.
Some analysts predict that this could boost energy prices in the homes of price-capped customers by about £ 700 a year, or about 50 percent.
Goldman said: “The impact of natural gas prices on the economy is broader than most people are aware of.
“This is not only the most important commodity for winter heating, but also because large industrial sectors such as chemicals, glass metal smelting and cement rely heavily on gas for manufacturing.
“But, importantly, natural gas is often the marginal fuel for electricity generation, which means it is one of the main drivers of electricity prices and has a significant impact on the economy as a whole.”