IEA Expects Russian Gas Deliveries to EU Will Drop More Than Half by 2025, as Electricity Prices Soar
July 6, 2022 (EIRNS)—The Paris-based International Energy Agency (IEA) has just issued its latest Gas Market Report, which warns that Europe is heading into an energy maelstrom. “In our forecast, Russian pipeline supplies to the European Union [will] decline by over 55% by 2025 compared to their 2021 levels, with Russia meeting 20% of EU gas Demand,” the IEA stated. “The share of Russian gas in EU gas demand is expected to drop to just 25% in 2022—its lowest level in more than two decades,” the agency added.
At the same time, the Financial Times reported that EU electricity prices have quadrupled over the last year, July-to-July, mainly as a result of soaring gas prices. This is the highest level on record. FT reported that German baseload power for delivery next year, which is the benchmark European price, traded at €325 ($334) per megawatt hour (MWh) on Monday, July 4, thus surpassing the previous record set in December. The price back in July 2021 was $83 per MWh.