EU to Cut Russian Natural Gas by 80%... Gas Independence Plan to Be Unveiled on the 8th

[Photo by AP Yonhap News]

[Asia Economy Reporter Park Byung-hee] The European Union (EU) Commission plans to unveil a blueprint for independence from Russian natural gas on the 8th (local time), Bloomberg reported on the 7th.

According to sources, the EU Commission is expected to significantly advance the target date for halting imports of Russian gas, while reducing Russian natural gas imports by about 80% this year. The source said the cessation of Russian fossil fuel imports will occur well before 2030.

Franz Timmermans, the EU Commissioner responsible for climate change, appeared before the European Parliament on the 7th and said, "I believe we can present a plan tomorrow to significantly reduce dependence on Russian natural gas starting this year and achieve independence from Russian natural gas within a few years." Commissioner Timmermans added, "It is not easy, but I believe it is feasible."

Currently, Europe imports 40% of its natural gas consumption from Russia. After Russia's invasion of Ukraine, concerns over supply instability have surged, causing natural gas prices to skyrocket.

On this day, the April delivery futures price for natural gas at the Netherlands TTF exchange rose 11.7% from the previous trading day to 215 euros per megawatt-hour (MWh). However, news that Brent crude oil futures prices surged to $139 per barrel in pre-market after-hours trading caused TTF natural gas prices to spike by 80% early in the session, reaching 345 euros per MWh. The price later retraced much of the surge and closed at 215 euros. The closing price of 215 euros is 12.6 times higher than the price of 17 euros a year ago.

Europe also imports one-third of its crude oil and half of its coal consumption from Russia.

The new measures to be unveiled by the Commission are expected to include expanding liquefied natural gas (LNG) imports, increasing pipeline supplies from non-Russian sources, transitioning to eco-friendly energy, and enhancing energy efficiency.

The new plan from the Commission will be discussed at the EU summit scheduled for the 10th to 11th in Versailles, France. The Commission began reviewing ways to reduce Russian energy imports after Russia's invasion of Ukraine on the 24th of last month.

The Commission is also reportedly considering strengthening related measures to achieve the goals of the so-called 'Fit for 55' carbon tax reform proposal. Fit for 55 is a reform plan unveiled by the EU last July, aiming to reduce greenhouse gas emissions by at least 55% from 1990 levels by 2030. However, there are opinions that a cautious approach is needed regarding strengthening measures related to Fit for 55.

This is because some member states are dissatisfied with the large-scale investment demands stemming from the Commission's eco-friendly energy policies. Recently, with the sharp rise in natural gas prices increasing government expenditures, the fiscal burden on governments has grown. EU governments have already spent hundreds of billions of euros to mitigate the economic shock caused by soaring energy prices.

This content was produced with the assistance of AI translation services.