Skip to main content

Ukraine impact on European gas markets has exposed biases in network design

May 19, 2022
Arjun Flora
Document

Key Findings

Europe has relied increasingly on Russia for imports of gas for power generation, heating (and cooking), and as an industrial fuel and feedstock. But this reliance varies among countries.

Gas prices have been at record highs since 2021, partly caused by reduced supplies from Russia–and prices have continued to rise since the invasion of Ukraine, with high volatility.

The fallout from the Russian invasion of Ukraine has disrupted the world’s liquefied natural gas (LNG) market, driving prices to record levels while likely positioning the industry for a significant downturn as emerging Asian markets are priced out of the market, according to a panel of IEEFA experts.

IEEFA’s analysts find that the disruption in the LNG markets has been truly global. Russia, which faces a series of international sanctions, is the world’s second-largest natural gas producer, its third-largest oil producer, and its sixth-largest coal producer. In addition, Russia provides Europe with more than one-third of its gas supply.

 

Press release: IEEFA experts trace the fallout from Russia’s invasion of Ukraine on global liquefied natural gas markets

Webinar: How is the Ukraine crisis and its fallout affecting global LNG markets?

 

Arjun Flora

Arjun Flora is Director of Energy Finance Studies, Europe. At IEEFA, Arjun is responsible for leading and building the Europe team, partnering with funders, campaigners and investors to maximize IEEFA’s impact. As a research analyst, he covers several topic areas relating to the energy transition in Europe, including power utilities, gas infrastructure, sustainable finance, renewable energy, energy markets and consumption trends.

Go to Profile

Latest Research

See all Research >

Join our newsletter

Keep up to date with all the latest from IEEFA