Expert predicts rise in energy prices in the EU in case of displacement of Russian LNG

Ursula von der Leyen, President of the European Commission (EC), does not understand anything about energy. Her statement that the ousting of Russian liquefied natural gas (LNG) from the European market should allegedly reduce the level of energy prices will have the opposite effect. Igor Yushkov, a leading analyst at the National Energy Security Fund, an expert and lecturer at the Financial University under the Government of the Russian Federation, told Izvestia on November 28.

Earlier in the day, von der Leyen said that the new EC will start to displace Russian LNG from the European market, which should allegedly reduce the level of energy prices. She also called for investment in clean energy.

"In reality, of course, if they displace Russian LNG, ban its imports, of course it will lead to higher gas prices, because Russia is now the second largest supplier of LNG to the European market, second only to the United States. This gap has been narrowing recently, and it turns out that if you remove the second largest supplier, naturally, your price will increase, because you will have to compete with other buyers for a limited amount of gas on the world market," Yushkov explained.

The expert recalled that the volume of LNG, for example, from Qatar to Europe has decreased against the background of escalation in the Middle East. Tankers with the resource now have to travel a greater distance, which means that more energy is spent on keeping the liquefied natural gas cooled.

He also pointed out that renewable energy isn't bringing prices down either.

"All the same, prices will also rise for electricity, particularly gas, in Europe. So, of course, von der Leyen is talking nonsense. She apparently does not understand anything in the energy sector and says completely illogical things," the expert concluded.

Next suspension: gas in Europe could double in price in winter

Why the fuel market is feverish and whether Europe will be able to do without Russian supplies

Earlier, on November 23, Bloomberg reported that Europe is threatened by a new gas crisis. One of the key factors that may contribute to a further increase in resource prices in the near future is the termination of pipeline gas supplies from Russia, which is still purchased by a number of European countries, the article specified. In addition, delays in the supply of liquefied natural gas from the United States and cold weather during the winter period may also contribute to the increase in cost.

On the same day, Deputy Chairman of the Russian Security Council Dmitry Medvedev said that residents of European countries are freezing due to the cessation of Russian gas supplies to European countries.

Back in October, Gazprom CEO Alexei Miller said at a plenary session of the St. Petersburg International Gas Forum that Europe's policy on the gas market could lead to a new gas price shock and supply disruptions. He called the situation on the European gas market bad and agreed with the assessment that the demand for energy resources there is being destroyed purposefully.