The IEA called on Europeans to turn down thermostats by one degree to save on energy this winter.
(Photo by Frank Rumpenhorst/picture alliance via Getty Images)
Europe needs to focus on gas saving this winter to minimize the calls on storage, the IEA said.
A total cut-off in Russian natural gas flows via pipelines to Europe is possible, it said Monday.
Europe could end up competing with Asia for gas as it becomes more scarce and costly, it said.
Europe must cut its use of natural gas this winter to preserve its inventory as Russia could completely cut off supplies, the International Energy Agency warned on Monday.
The Paris-based organization warned in its quarterly report that gas saving measures could be crucial to maintain high storage levels “as Russia intensifies its use of natural gas supplies as a political weapon.”
“Security of supply has become a top priority in Europe and other importing regions as a total cut-off in Russian flows to Europe cannot be ruled out, creating further tensions and demand destruction for all competing LNG importers,” it added.
According to the agency, Europe’s gas usage needs to be 13% lower than its five-year average to ensure inventories are above 33% through winter.
That calls for households to turn down thermostats by one degree and adjusting boiler temperatures through the winter period, the IEA said.
Soaring gas costs have already pushed down European consumption by 10% this year but more work is needed to keep Europe’s energy supplies safe, the IEA said.
“Gas saving measures will be crucial to minimise storage withdrawals and keep inventories at adequate levels until the end of the heating season,” it added.
“The outlook for gas markets remains clouded, not least because of Russia’s reckless and unpredictable conduct, which has shattered its reputation as a reliable supplier. But all the signs point to markets remaining very tight well into 2023,” the IEA said in a statement accompanying its report.
The tight market has pushed European natural gas prices to painful highs with Dutch TTF futures, the euro zone benchmark, soaring 165% year-to-date. They topped 340 euros per megawatt hour in late August. Prices last stood at 178 euros, down 5.7% on the ICE exchange.
Since the invasion of Ukraine, Europeean countries have been sourcing natural gas from countries like Qatar and the United Arab Emirates to try and replace Russian supplies.
Western sanctions against Russia led to a series of natural gas cuts by Moscow via the key Nord Stream pipeline.
Natural gas supplies were squeezed even further after explosions at those pipelines last week. The EU called the explosions a “deliberate act,” while NATO pointed to sabotage, sparking fears that Russia could cut its last flows to Europe via Ukraine.