Equinor Expects Tight Winter Natural Gas Market in Europe

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Europe,Gas Supply,Gas Demand

Equinor warns of a tight natural gas market in Europe due to geopolitical tensions, winter demand, and the potential end of Russian gas transit via Ukraine.

Europe’s natural gas market is in a precarious balance as winter begins and external factors will likely lead to a tight market at the end of 2024 and early 2025, according to Torgrim Reitan, chief financial officer at Norwegian energy major Equinor. The natural gas market and prices in Europe will be shaped in the coming months by the end of the Russia-Ukraine gas transit deal and demand for LNG in Asia, Reitan told Bloomberg TV in an interview on Wednesday.

The European natural gas market has been on edge for weeks with the start of the winter heating season, a massive lull in wind speeds in northwestern Europe, a dispute in Austria over Gazprom’s gas deliveries, and the upcoming end of the gas transit deal via Ukraine. The European gas market is bracing itself for the end of the gas transit deal for Russian flows via Ukraine.

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