Middle East

Russia does not use gas as a weapon

President Vladimir Putin is ready to help ease Europe’s energy crisis on Wednesday as Russia does not use gas as a weapon and called an emergency summit to tackle rising prices for regional blocks. He said it was done.

Energy demand surged as the economy recovered from pandemics, boosting oil, gas and coal prices, agitating inflationary pressures and undermining efforts to reduce the use of polluted fossil fuels in the fight against global warming. ..

China, the world’s second-largest economy and the largest greenhouse gas emitter, has struggled to maintain domestic coal prices at record levels and power plants to maintain home and factory lighting. As a result, it is boosting coal production and imports.

The energy crisis has tripled investment in renewable energy in stable markets and amplified Wednesday’s call by the International Energy Agency (IEA) to combat climate change.

European gas squeezing has spotlighted Russia, which accounts for one-third of the region’s supply, and urged European politicians to blame Moscow for not pumping enough.

Putin announced at the Energy Conference in Moscow https://www.reuters.com/business/energy/kremlin-says-russian-gas-supplies-europe-are-maximum-levels-2021-10-13, The gas market said it wasn’t. Especially in Europe, it is predictable that it is balanced, but Russia has fulfilled its contractual obligation to supply its customers and is ready to increase its supply if requested.

He dismissed the idea that Russia was using energy as a weapon. “This is a politically motivated chatter and has no basis at all.”

Russia and Europe are involved in a controversy over Nord Stream 2, a new pipeline to supply Russia’s gas to Germany. The pipeline is being built, but is awaiting approval to begin pumping in opposition from the United States and some European countries, which fear Europe will become more dependent on Russia.

Some European politicians say Moscow is using the fuel crisis as leverage.

On September 6, 2021, Laborage Fortuna experts welded the last pipe of the two strings in the Nord Stream 2 pipeline. After that, pipe number 200,858 was dropped onto the seabed in the German waters.

Source: © Nord Stream 2 / Axel Schmidt

DE-GAS EUROPE

The European Commission outlined on Wednesday the steps taken by the EUs of 27 countries to combat the energy crisis, including considering joint gas purchases between countries to mitigate price spikes.

EU countries will hold an extraordinary meeting on October 26 to discuss price spikes.

“The only way to completely separate gas from electricity is no longer to use it to generate electricity,” said Kadori Simson, EU Energy Policy Officer. “This is the EU’s long-term goal of replacing fossil fuels with renewable energy.”

The Paris-based IEA will achieve net zero emissions by 2050, the goal of the 2015 Paris Climate Agreement, and the world will be clean energy by 2030 to limit global warming to 1.5 ° C. Said that it would need to invest $ 4 trillion in infrastructure.

“The world is not investing enough to meet future energy needs,” he said in a report released before the UN COP26 Climate Change Conference in Glasgow, Scotland, on October 31st.

Winter spikes?

Oil and gas prices soared as renewables failed to fill the gap amid surges in demand.

Benchmark crude was trading near a three-year high above $ 84 a barrel last week. Benchmark European gas prices have risen more than 350% this year, trading above $ 31 per million British thermal units (mmBtu) on Wednesday, but down from the surge above $ 52 last week.

Citibank has raised its quarterly European and Asian benchmark gas price forecast by about $ 3, saying that European prices could average $ 30.90 / mmBtu.

“Current prices are basically above legitimate levels and should continue to fluctuate, and can reach over $ 100 / mmBtu this season in very cold weather,” he said.

The Petroleum Exporting Countries Organization has adjusted global oil demand forecasts https://www.reuters.com/business/energy/opec-trims-2021-demand-forecast-says-gas-price-surge-could-help -2021 2021 is -10-13, but said soaring gas prices could boost demand as customers switch to petroleum products.

In China, the most active January Zhengzhou thermal coal futures hit a record high of 1,640 yuan ($ 254.54) per ton on Wednesday, rising more than 190% so far this year.

Local governments in Shanxi Province and Inner Mongolia Autonomous Region, China’s top coal-producing regions, have ordered about 200 mines to increase production, but in Shanxi Province 60 mines have been rained. China’s coal imports surged 76% in September.

Beijing allowed power plants to charge commercial customers market-based prices and the industry to lock fixed-price electricity transactions with suppliers with the aim of alleviating electricity shortages. He said he would break the policy.

($ 1 = 6.4430 RMB)

(Report by Kate Abnett in Brussels, Vladimir Soldatkin in Moscow, Oksana Kobzeva, Alexander Marrow, Muyu Xu and Shivani Singh in Beijing, Jessica Jaganathan in Singapore, Noah Browning in London, Written by Edmund Blair, edited by Carmel Crimmins)

https://www.oedigital.com/news/491289-putin-russia-not-using-gas-as-a-weapon Russia does not use gas as a weapon

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