How Will Europe Replace Russian Gas? A Look at Alternative Sources

CGTN Europe

Gaurav Sharma, Energy Analyst from Oilholics Synonymous spoke to CGTN Europe about the impact of Europe's reduced reliance on Russian gas, particularly for Slovakia and Moldova.

Transcript

00:00Talked to Gaurav Sharma the independent energy analyst and welcome back good to see you

00:05And what does the end of Russian gas in Europe mean for?

00:09Moscow historically of course reliance on its gas exports

00:15Good to be back in the program Jamie and happy new year to you and the CGTN team

00:20Well look new year new problems as your colleague was alluding to in his report

00:24and what I would say is that for Moscow it is it is a blue, but the

00:28The Russian side had actually been financially preparing for this the European seem to have been you know at least what they're conveying

00:36Right now seem to be caught out cold with the Slovakian head of state going over to talk to President Putin

00:42I don't see what that would have changed

00:44Slovakia knew it was exposed for a long for a prolonged period of time ever since the hostilities began in in

00:51In Ukraine, so what we have here is a situation whereby which about around 15 p.m.

00:5710 percent of Russian gas is going to be knocked off grid with Slovakia and Moldova being at the receiving end

01:03The Russian seem prepared the European side still seem to be sort of getting their heads out of the sand

01:09Some countries like Moldova now facing perhaps an energy crisis. What are their best options now I?

01:17Think the best option would be to plead to the neighbors now some Russian gas is still coming in

01:23There's a bit of Russian energy coming into Europe the third stream pipeline through which hungry

01:27Receives most of its product is still very much on stream, but they've declared a 60-day emergency

01:34I think things are going to be pretty bleak and the problem here

01:38Is that we keep alluding to supplies in Northern Europe that could be piggybacked on for a price of course?

01:43But storage in Northern Europe is also somewhat in 2023 levels

01:48So it's it's a bit of a pickle the Moldovans find themselves and the Slovakians as well

01:53How complex was the process of Europe diversifying?

01:57energy resources

02:00Look, this is the oldest

02:02Supply route to Europe it's been going on for but consider Peter

02:07Decoupling would never been easy and as it has proved out to be now

02:11What's gradually happened if you go top down from Europe from north to south?

02:16Gradually countries have been weaning themselves off

02:20Reliant on US energy for instance of Qatari energy or other sources

02:25That's further down south you go and the more you go towards Eastern Europe the more

02:30Difficult and the more expensive it becomes for these countries to wean themselves off

02:34But they as of now they have very little choice but to rely on their northern partners

02:39And there will be some political tensions associated with that

02:42So who else might be set to replace?

02:46Russian gas and how reliable are those alternative sources?

02:52See the the med can step in Mediterranean supplies can step in but for them to come in incremental volumes

03:00There is still a considerable amount of investment required

03:03Good will required on their parts for for for that particular gas to find its way for instance from from North African

03:10exporters for that to find its way to Italy for that to feed into the

03:14unbundled pipeline system that Europe has and for them to

03:17For that gas to ultimately find its way to the likes of Moldova and Slovakia

03:22But there are no easy solutions and every single alternative is going to be vastly more expensive than the current one

03:28Gaurav happy new year good to see you Gaurav Sharma the independent energy analyst

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