Europe‘s energy crunch: Andreas Goldthau comments on the current crisis

As the world economy recovers from the Covid-19 pandemic, industry has woken up. Therefore, EU demand for natural gas is up, as in other world regions, driving prices up. In addition, Europe experienced a cold winter in 2020, which left gas storage in need of replenishment. Speaking on Al Jazeera’s “Inside Story”, Professor Goldthauindicated that the current level of EU gas storage is lower than the typical yearly average. Goldthau also discussed the geopolitics of gas supply. He pointed out that the current crisis plays into Russia’s hand, as it puts pressure on the EU to allow the new Nord Stream 2 pipeline to become operational. He also argued that although a determined clean energy transition will eventually lower the EU’s import dependence on Russian gas, the effect will probably be rather long-term, as renewables need to be ramped up in the EU and given the contractual agreements between Russia and Europe.