The shortage of natural gas in Europe is becoming more and more serious. Will the "Beixi -2" pipeline be the savior?

The last section of the Beixi -2 natural gas pipeline was welded in place on Monday, which means that the pipeline with a cost of 1 1 billion dollars will be opened soon, which will double Russia's gas transmission capacity to the EU market through the Baltic Sea submarine passage, and can directly transmit gas to the western market by bypassing the disputed Ukrainian territory. This situation may be expected to alleviate the "gas shortage" in the European market in the future, but at least for now, the price of natural gas in Europe remains high.

Since the beginning of this year, global natural gas prices have recorded explosive increases, and the benchmark natural gas price in the United States has increased by 200% compared with last year's trough. In the European market, due to the continuous tension between the European Union, the United States and Russia on the Ukrainian issue, the shortage of gas supply has made the price increase of natural gas in Europe even exceed that in the North American market, ranking first in the world's major markets. Although there is still an urgent need to import natural gas from the United States across the ocean, the situation of high energy prices will not change until the Beixi -2 pipeline is put into production.

For Europe, which has just got rid of the epidemic, with the comprehensive recovery of economic and social activities and the momentum of workers returning to work, the demand for natural gas and electricity is increasing. Germany is experiencing the highest inflation since 2008 due to rising energy prices. Market investors are more worried that the price of natural gas may rise further in the second half of the year after the cold weather triggers additional demand for natural gas heating.

Under normal circumstances, the demand for natural gas fuel in the European market is low at the turn of summer and autumn every year, so it is difficult to keep the fuel price high under such a seasonal background, which makes observers even more worried. Especially since then, around the middle of 10, Russia and other countries will enter the heating season one after another, and the surplus of natural gas that can be exported to Europe may be more limited. However, the latest meteorological data reveals the great possibility of another severe cold in the northern hemisphere this winter. This may reduce the natural gas inventory in the European market to a "dangerous" level.

As the most respected "green energy" field in the world, Europe has invested heavily in wind power generation and other fields, hoping to replace some fossil energy applications. However, this year, the hot and humid weather has also limited the wind resources, making the traditional thermal power generation still have to shoulder the heavy responsibility of power supply. In fact, at present, the price of natural gas energy per unit calorific value in the European market has partially exceeded the price of fuel oil, which means that the electricity price in EU countries needs to be raised this winter. Analysts estimate that the price increase in this field may reach 20%.

In this case, increasing the supply of natural gas from Russia will be the only "life-saving straw" in the European energy market, but even if the Beixi -2 pipeline is opened, Russian natural gas exported to Europe can avoid paying "tolls" to Ukraine and only partially reduce costs. Before the efficiency of the new energy industry is further improved, the pressure of energy supply in Europe will probably continue for a long time.

I saw the above news on "One Futures". I hope it helps you.

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