According to Ineos Group, Europe will have to ration natural gas (LNG) in order to heat winter.
In a Bloomberg Television interview, Brian Gilvary, executive chair of Ineos Energy, a UK chemical company, stated that “it looks pretty dire for the winter now. As to whether we will get to the targets for storage.” It is unavoidable that Nord Stream 1 will not return. Europe will see rationing.
Gilvary stated that companies in France, Italy, and Germany will seek to reduce their gas consumption in the event Nord Stream is shut down. This week, the pipeline that transports fuel from Russia to Germany was shut down for annual maintenance. There is concern that Moscow might keep it closed in retaliation against sanctions following its invasion of Ukraine.
Ineos is one of Europe’s biggest gas users and has reached a deal to purchase 1.4 million tons of liquefied gas per year from US exporter Sempra for a period of 20 years.
