European Union Plans 15% Cut In Natural Gas Usage - InvestingChannel

European Union Plans 15% Cut In Natural Gas Usage

The European Union is planning to lower its natural gas consumption by 15% over the next

eight months, dealing a potential blow to households and industry.

The planned reduction comes amid growing concerns that Russia will cut off natural gas exports

to the continent in retaliation for economic sanctions imposed on it following its invasion of

Ukraine.

Russian President Vladimir Putin has warned that unless sanctions are eased, natural gas flows

to Europe will be curbed in coming months. The European Union’s challenge is to ensure

sufficient gas supplies to fuel furnaces and power generators this coming winter.

Under its “Save gas for a safe winter” plan, the European Commission recommends steps that

include reducing heating and cooling, switching to other fuels, and market-based measures.

The European Commission is working under the assumption that Russia won’t resume full

deliveries via its Nord Stream gas pipeline, which has been closed in recent weeks for repairs.

The European Commission’s proposed cut to natural gas consumption still needs approval from

member states. A large group of countries oppose the planned cuts, arguing that national

governments already have emergency plans in place and will reduce demand regardless of

whether they are asked to do so by the European Union.

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