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IEA calls on EU not to renew Gazprom contracts

The International Energy Agency has urged the EU not to sign new supply contracts with Gazprom as stipulated a 10 point plan Reduce Russian gas imports to the region by a third within a year.

Gas import contracts covering more than 15 billion cubic meters (bcm) of annual gas, about 12% of Russia’s supply to Europe, are due to expire this year and should not be renewed, said Fatih Birol, IEA director general at a news conference. On Thursday.

Russia, which supplies up to 40 percent of Europe’s gas, uses its resources “as an economic and political weapon,” Birol said, making it more important than ever to reduce the EU’s dependence on Russian supplies and accelerate the region’s transition to greener. Fuels.

The IEA’s proposals, which include increasing gas flow from other countries, increasing renewable energy sources, introducing minimum gas storage obligations for EU companies and improving energy efficiency, come amid a deepening war in Ukraine and rising energy costs.

Wholesale European gas prices soared on Thursday by a further 13% to a high of 199 euros per megawatt hour, as analysts said companies with short-term gasprom contracts are seeking to exit these deals and find alternative sources of supply.

According to IEA analysis, the EU may increase gas imports from other sources, including gas in pipelines from Norway and Azerbaijan and liquefied natural gas from countries like Qatar, by 30bcm over the next year. Accelerating new wind and solar projects and maximizing the use of bioenergy and nuclear energy could reduce gas use by 19 bcm.

Birol presented the plan alongside Kadri Simson, the European Commissioner for Energy, and Barbara Pompilli, the French Minister for Ecological Transition in France, who serves as the rotating president of the European Union.

“Stopping our dependence on Russian fossil fuels, and fossil fuels in general, is essential,” Pompili said.

The IEA’s proposed measures were in line with the EU’s climate target of reaching zero greenhouse gas emissions by 2050, Birol said. “We are not making a compromise here.”

The question of whether to delay the planned retirement of nuclear plants in Europe was a “delicate issue… Which may provoke debate,” he added.

Further measures may reduce Europe’s dependence on Russian gas more quickly, but will involve “significant compromises,” the IEA said. The bloc could increase electricity production using coal and oil, for example, but it would not be tailored to its climate commitments.

In a conversation with Birol, Simson said the bloc must move to renewable energy “as quickly as technically possible”.

The EU has also recently held talks with oil-producing countries to ensure an additional emergency supply of crude oil is available in the event of a disruption to Russia’s shipments. Russia supplies about a quarter of the EU’s oil. Under EU law, member states are required to hold an emergency stockpile of oil, equivalent to at least 90 import days.

Kadri said on Thursday that if there was a disruption to oil shipments, Europe would be “ready.” In a speech to the European Parliament he said: “Across Europe there is a strong structure of oil reserves”.

Another report by Henry Poe in Brussels

IEA calls on EU not to renew Gazprom contracts Source link IEA calls on EU not to renew Gazprom contracts

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