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Iberian peninsula’s energy independence: the envy of Europe?

Editor by Editor
1 year ago
Reading Time: 1 min read
Iberian peninsula’s energy independence: the envy of Europe?
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With Putin’s unilateral gas supply suspension until sanctions by the West are lifted, affected gas buyers and respective countries can now sue Gazprom for breach of contract and seek redress in arbitration.

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Interesting to note the Iberian Peninsula’s electricity price is ~2/3 lower than mainland EU – which are now paying 6x the price at the start of this year. Why ?

No Russian gas supply, long term gas pipeline and LNG contracts with Algeria, Libya, Egypt, Nigeria, Trinidad, Equatorial Guinea, Qatar, and USA – with pricing largely based on a basket of energy commodities with limited influence of NBP, TTF or Nymex HH.

The strength and variety of the gas supply portfolio (source and route) coupled with a less volatile, smoother and more predictable pricing environment – enables industry, consumers and Governments to better manage energy security, hedge and ensure a higher degree of economic stability.

Mainland EU countries should be inspired to follow the Iberian Peninsula example?

Source: Claudio STEUER

Tags: Claudio Steuerenergy crisisgas contractsgas pricesGazpromLNG
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