“Europe’s proposal to cut Russian oil and gas imports in light of the Russia-Ukraine conflict will result in a further rise in gas and energy prices, a greater risk of gas shortages, and a more rapid decline in the sector. of gas utilities, as consumers find alternatives “. This is what emerges from the report “Europe’s Exit From Russian Gas: 10 Questions On Utilities”, published yesterday by S&P Global Ratings which recalls that the European Commission presented in recent weeks the outline of its new plan to make Europe independent from oil and Russian gas.
The proposal, REPowerEU, will seek to diversify gas supplies, accelerate the introduction of renewable forms of gas, thus reducing the demand for Russian gas in the EU as soon as possible. “While such a plan is essential for Europe’s energy security, it may not be easy to implement”, analysts from the US rating agency report.
S&P Global Ratings stresses that “a further acceleration of energy production from renewable sources and renewable gases (biomethane and hydrogen) could favor investment, if supported by public funding, but we expect Europe to face major difficulties in the implementation of these plans. European countries seem increasingly open to an alternative model of the energy market, which could represent a turning point for the sector in the long term “.