IEA Chief warns of European energy vulnerability

Fatih Birol, head of the International Energy Agency (IEA), has warned that Europe faces a difficult period for both this year and next due to historically low natural gas reserves. Speaking in Berlin, Birol noted that European gas storage levels are currently at 72 percent, significantly below the seasonal average of 90 percent.

The energy crisis is being exacerbated by geopolitical tensions, specifically the conflict involving the US, Israel, and Iran, which has disrupted supply chains in the Strait of Hormuz. This disruption has led to a sharp decline in liquefied natural gas (LNG) imports. Birol highlighted that Europe is now in direct competition with Asian nations for available supplies, both of which rely heavily on the Middle East.

If a harsh winter occurs, Europe could see a rise in natural gas prices. Analysts estimate that the current storage deficit represents the energy required to supply between 10 and 12 million households.