The French energy giant is concerned about the high price of gas in Europe.
Today, Patrick Pouyan told the Belgian newspaper Eco: Europe will supply less gas from Russia than in 2022, it will have to import a lot of liquefied natural gas (LNG) again, and the situation will become worrying again.
According to the CEO of Total, Europe has been able to maintain more gas reserves than usual this winter because unusually mild weather has reduced demand and liquefied natural gas imports continue to be plentiful. Europe’s gas reserves will end the winter at about 50% of capacity, and enough gas has been provided to fill reserves in time for next winter. This optimism has reduced the price of gas by about 30% in the last month.
However, the sharp drop in Russian supply remains a concern. This will increase Europe’s competition with Asia for LNG imports, and the increase in demand could make it more difficult to obtain the necessary shipments needed to replenish the inventory.
Saying that European countries should diversify their energy suppliers through long-term contracts, Pouyan said that there is no risk of diesel shortage in this continent and that all Total refineries, including the facilities located in Saudi Arabia, will give priority to meeting Europe’s needs. However, he warned that this would incur additional shipping costs.
The ban of the European Union on the import of Russian oil derivatives, including diesel, will be implemented from February 5 ). Some analysts have warned that this could create shortages on the continent. According to the report of the multinational investment bank Goldman Sachs, Russia accounts for 15% of the world’s diesel production, 80% of which was exported to Europe until recently.
