Congestion in the European gas market

In the wake of the Russian invasion of Ukraine, the changes in supply and demand created gas transportation bottlenecks in the EU. With LNG and increased pipeline supplies primarily entering the EU from the west (in a system primarily designed for transporting Russian supplies to Europe), bottlenecks in transportation occurred. Due to physical congestion at LNG terminals and at cross-border pipelines in North-West Europe, the system was used at full capacity and gas could not easily flow to where it was needed most during the 2022 energy crisis, which drove hub price-spreads high. To address these bottlenecks in the short […]

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