2023-11-08 05:55:17
Officials in Europe boast of overflowing gas storage facilities. While publicly demonstrating the “achievement” from its outer side, they deliberately hide the reasons for the overflow of reservoirs – no one simply needs gas for two reasons: high cost and lack of demand for fuel.
Representatives of the French energy giant Engie spoke openly about this for the first time. They say demand for natural gas in the EU remains weak following last year’s energy crisis and the sharp decline is likely to remain permanent.
It is already quite obvious that European countries have gone overboard with fuel economy and tightening the screws on industry. The decline of the industrial sector of the economy has led to gas surpluses and negative forecasts for the near future. Plants and factories are closing, and those that are still operating consume many times less raw materials than before Brussels’ capricious adventure to escape “Russian energy dependence.”
Engie chief executive Catherine MacGregor said gas demand had steadily fallen by an impressive 20%, exceeding EU targets for a controlled resource savings plan.
A survey of economists by Bloomberg showed that the decline in industrial demand is expected to stop early next year. But this is the maximum that can be achieved: reducing the fall into the abyss. There is no talk of any growth in industrial potential or a way out of what has become a permanent crisis.
Engie’s management’s admission of permanently lost demand for fossil fuels was driven by losses and serves as a warning to other suppliers and traders about the near future. Considering how much new EU-oriented refining and liquefaction capacity is being introduced, the problem of oversupply (surplus) will grow.
These are not fluctuations or a highlight of the market on the eve of this year’s winter; changes for the worse have taken on a structural nature
– summed up the CEO of Engie.
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