IEA warns Europe should lower fuel consumption instantly


The International Energy Agency has warned Europe should take rapid steps to scale back fuel consumption forward of the winter, urging governments to cap air con use and begin auctioning fuel to trade or threat rationing through the coldest months.

Fatih Birol, the IEA head, stated on Monday that cuts to Russian provides meant European efforts thus far had been falling quick and urged governments to “make every remaining day count” with efforts to fill fuel storage amenities over the following three months.

“Russia’s latest moves to squeeze natural gas flows to Europe even further, combined with other recent supply disruptions, are a red alert for the European Union,” Birol wrote in a report.

He stated that whereas excessive costs had already curbed some consumption “significant additional reductions are needed to prepare Europe for a tough winter ahead”.

The IEA chief stated that the most recent evaluation from the company, which acts as an vitality watchdog for OECD international locations, advised that Europe wanted to curb consumption by 12bn cubic metres (bcm) between now and the beginning of the heating season, or the equal of 130 tanker a great deal of seaborne liquefied pure fuel.

The name from the IEA, which acts as a watchdog for OECD members, comes as Brussels is that this week attributable to announce a fuel discount plan for winter, which can advocate measures for EU international locations to chop fuel use.

Negotiations on the plan continued over the weekend, specializing in whether or not the European Commission may implement obligatory fuel discount targets for member states, in keeping with two EU officers.

Commission president Ursula von der Leyen travelled to Azerbaijan to announce a fuel deal on Monday that aimed to extend deliveries of pure fuel from the central Asian nation to the EU to 12 bcm this yr, up from 8.1 bcm in 2021.

The plan is for provides to finally attain “at least” 20 bcm by 2027, in keeping with a draft memorandum seen by the Financial Times, arriving within the EU by means of the Southern Gas Corridor pipeline, a joint undertaking between Brussels and Baku that opened in 2018 and is especially equipped from gasfields within the Caspian Sea.

But the IEA stated plans to diversify provides from Russia wouldn’t be sufficient on their very own this winter and stated the largest single step the EU may take to fulfill its fuel storage goal of 90 per cent, the extent the IEA says the EU would want to succeed in by the beginning of the heating season if Russian fuel flows are severed totally later this yr, is to carry down consumption.

“It is categorically not enough to just rely on gas from non-Russian sources — these supplies are simply not available in the volumes required to substitute for missing deliveries from Russia,” Birol stated.

“This will be the case even if gas supplies from Norway and Azerbaijan flow at maximum capacity, if deliveries from north Africa stay close to last year’s levels, if domestic gas production in Europe continues to follow recent trends, and if inflows of LNG increase at a similar record rate as they did in the first half of this year.”

Birol laid out 5 steps he stated would assist the EU meet its targets, together with “setting cooling standards and controls” for family and public constructing air conditioner use, burning coal and oil as an alternative of fuel for electrical energy era and discovering methods to “harmonise” emergency fuel coverage between members.

He stated the EU also needs to introduce “auction platforms to incentivise EU industrial gas users to reduce demand” by means of a aggressive bidding course of.

According to a draft fee proposal seen by the Financial Times, Brussels will set out pointers on which industries needs to be prioritised within the occasion of a whole shut-off of Russian fuel provides.