EU seeks 15% cut in natural gas use on Russian supply squeeze

Bloomberg

The European Union proposed that the bloc cut its natural gas consumption by 15% over the next eight months in a plan that would affect all households, power producers and industry.
The move reflects mounting concern that Russia will halt gas exports to the region in retaliation for sanctions following its invasion of Ukraine. A cutoff would threaten EU efforts to replenish stockpiles ahead of winter, potentially jeopardising security of supply to key sectors and crippling the region’s economy well into next year.
The EU’s suggested demand reductions equate roughly to the annual gas consumption of France, though at this stage remain voluntary. Measures put forward by the European Commission on Wednesday include a mandatory trigger should the supply situation deteriorate significantly.
“The European Union faces the risk of further gas-supply cuts from Russia due to the Kremlin’s weaponisation of gas exports,” the European Commission said. “Taking action now can reduce both the risk and the costs for Europe in case of further or full disruption.”
European gas prices rose after Russian President Vladimir Putin warned that the major Nord Stream pipeline could return from maintenance at lower rates of flow unless a spat over a key piece of equipment is resolved. Curbs to Russian shipments have already affected 12 member states, and prompted Germany to raise its gas-risk alert to the second-highest level.
With persistent doubts over supply, the European Commission recommended gas-saving steps that include reducing heating and cooling, switching to other fuels and market-based measures.
“I’m confident we can master this Russian-engineered energy crisis by staying together,” Commission President Ursula von der Leyen said. A Russian gas cutoff in July would mean that EU stockpiles would be 65% to 71% full at the start of November, below the 80% target, the commission said.