The future of Russian gas transit through Ukraine remains a key uncertain factor for European gas prices, even as the continent prepares to head into winter with its gas reserves full, Reuters reported. said TotelEnergies CEO Patrick Pouyanne.
The agreement to transit Russian gas to Europe via Ukraine is expected to expire at the end of this year. Last year, Russian gas transit through Ukraine was 15 billion m3 out of a total of 295 billion m3 of gas consumed by the EU.
In addition, there are currently concerns that the flow of Russian gas to Europe may soon be interrupted amid fighting taking place in Russia's Kursk province. The place where the fighting between Russia and Ukraine occurred is Sudzha - a transit point for Russian gas into Ukraine.
"Even if gas reserves are full, I'm not sure if we can ensure adequate gas if transit activities through Ukraine are interrupted" - Mr. Patrick Pouyanne shared.
Data from Gas Infrastructure Europe shows that the last recorded level of European gas reserves was 91.2%, 2 months earlier than the target set on November 1.
The European gas market will continue to be affected by fluctuations because there is not much new supply added to replace Russian gas transited through Ukraine, Mr. Pouyanne added.
The CEO of TotalEnergies also noted the delay in implementation of new liquefied natural gas (LNG) projects, such as the Golden Pass project in the US.
"Therefore, we are still in a period where we do not have much space in terms of energy supply" - he added.
This situation is likely to continue until 2027, the CEO of TotalEnergies forecasts.
In early August, gas prices in Europe rose above 40 euros to their highest level since December last year due to concerns that Russian gas transit could be stopped due to fighting in Kursk.
