Hong Kong China News Agency, September 26. On the 25th local time, EU Energy Commissioner Dan Jorgensen sent a letter to the energy ministers of the 27 EU countries and warned that the EU is facing a supply crisis due to the impact of the war in Iran on the global oil and gas market. Related "price crisis". He called on countries to take immediate measures to curb the demand for natural gas and electricity to cope with the coming severe winter.

Figure: Flag of the European Union 

Although Jorgensen said that the EU's current preparations are better than winter 2021, thanks to the increase in LNG import capacity and the increase in renewable energy, he still urged governments to strengthen preparations for this winter. He recommended that countries adopt or maintain energy-saving measures to maintain gas injection in gas stores, or reduce demand if necessary, by limiting the indoor temperature of public buildings, prohibiting the use of outdoor heating equipment, and turning off non-essential public lighting.

The EU's energy vulnerability stems from its high dependence on imports. Data show that 57% of the EU's energy consumption depends on imported fossil fuels, and foreign suppliers meet about 80% of its natural gas demand, which makes it extremely vulnerable to geopolitical conflicts and global market fluctuations. The price of oil and gas in the EU has soared due to the recent geopolitical conflict that has disrupted oil and gas transportation.

According to data released by the European Commission on the 24th, the average price of diesel in Member States has risen to a record high of 2.23 euros per liter. According to a report by the British "Financial Times" in early September, European natural gas prices hit a three-year high, while natural gas inventories only reached 65.6 per cent of storage capacity, the lowest level in the same period in 15 years.

Reuters pointed out that due to high natural gas prices, some EU countries have been difficult to effectively replenish inventories before the peak of winter energy demand. In the face of this price crisis caused by the supply crisis, the EU is asking member states to find a balance between maintaining energy reserves and reducing domestic demand.