The Natural Gas Trap

Europe suffers from high gas prices. The US and other producers are stepping in. Will it help?

• Prices for natural gas deliveries to Europe have skyrocketed in recent months. That hurts consumers as well as businesses – who need gas for their production.
• The International Energy Agency partly blames Russia: Europe’s biggest source for the fuel has dramatically reduced deliveries and lets European storage capacities run empty.
• Attracted by the rising prices overseas producers are stepping in: The USA and Qatar have been shipping unprecedented amounts of Liquified Natural Gas (LNG) to Europe.
• The turmoil on energy markets is the most important reason for increasing consumer prices in the European Union and in the UK. After years of low inflation price hikes have accelerated in 2021.
• This reading provides an overview of developments in the natural gas market and reasons for soaring prices. For a long time energy costs could remain the defining factor for economic prospects.