La Stampa: It is only warm winter that may save Europe from deep crisis

The energy crisis in Europe will last at least four years if energy prices remain at current levels, Franco Bernabe, the head of the leading Italian steel company Acciaierie d'Italia told La Stampa.

In his opinion, the situation is not going to change fundamentally until new LNG plants are brought into operation at the international level.

Against the background of the aggravation of geopolitical relations between Moscow and Europe, Russian natural gas will still be in short supply and the confrontation will continue, Bernabe believes. In his opinion, the increase in gas prices, which increases the cost of electricity, was caused by a combination of supply and demand factors.

The generation of wind power in the North Sea has decreased along with the generation of hydroelectric power in Argentina and Brazil. At the same time, energy demand in Europe, Japan, Korea and China have soared against the backdrop of the economic recovery after the pandemic, the head of Acciaierie d'Italia said.

The LNG export capacity may increase considerably only by 2026.

"It took the European industry 50 years to replace oil and coal with gas. The EU Commission, disregarding the complexity of the project, assumed that it would be possible to replace gas with renewable energy source in just ten years," he complained.

The energy crisis may affect European countries in the coming months, as the situation on the global energy market remains tense and Russia cuts gas supplies to other countries. It is only warm winter that may save Europe from the looming crisis.