Europe and its energy challenge

Key takeaways:

1. One of Europe’s key problems that have put the region in a vulnerable position is its high reliance on Russian gas, coming primarily via pipeline.
2. The growth of LNG trade has helped the EU to alleviate the impact of the partial loss of Russian gas, but this has come at a high cost. Growing competition with Asia is a serious challenge, especially if gas demand in China recovers quickly following the country’s abandonment of zero covid policy.
3. The current crisis has led European policymakers to acknowledge the importance of investments in fossil fuels as well as other sources of energy. Energy security can only be achieved in diversity and diversity alone.