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'Sapere aude'
by Oui (Oui) on Sat Dec 25th, 2021 at 11:58:42 PM EST
Certainly, European gas buyers under-ordered considerably, neglected their obligation to fill storage capacity over summer, and apparently aren't going back to Gazprom to buy more.

One suspects this is all a matter of underestimation of demand (unexpected economic rebound, French nuclear maintenance), and hardball commercial negotiations : Gazprom will only give extra supply in return for higher baseline prices, for example... at least, that is a sufficient explanation without reaching for political complications.

But perhaps suppliers were anticipating LNG would come to the rescue; gas being perfectly fungible, and Europe well-equipped with LPG terminals.

The short-term squeeze is over, with weather less cold and lower industrial production over the holidays. But all of this is a salutary lesson for Europe. And particularly, for Germany : the whole Energiewende as currently planned, depends heavily on gas to generate peak electricity while shutting down nuclear and coal.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Mon Dec 27th, 2021 at 03:16:35 PM EST
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