US officials have vowed to defend the interests of European players amid surging gas prices, which some are blaming on intentional market manipulations.
Gas prices. Credit: Pavel Ignatov / Shutterstock
Gas prices have been surging across Europe owing to demand outpacing supply. Credit: Pavel Ignatov / Shutterstock
Gas prices in Britain have surged around 250% and the continent has seen similar spikes in energy prices, which some officials have blamed on Russia shorting supply.
Read more: High energy prices show need for green transition, says EU's Timmermans
US energy secretary Jennifer Granholm said the US would "stand up" to any potential market manipulation, revealing the ordeal had “raised serious concerns and questions on the reliability of the existing supply and security in Europe”.
She told a Warsaw conference: "We are united with our European allies in making sure you get adequate, affordable gas supply this winter.
“We and our partners have to be prepared to continue to stand up where there are players who may be manipulating supply in order to benefit themselves."
Demand for energy in Europe has outstripped supply, and with limited reserves, some European countries have begun warning of gas shortages throughout the winter period and provided stimulus packages for households and utilities.
Key players in the industry have suggested Gazprom may be restricting supply, although whether this is true remains to be seen.
Russia currently accounts for 40% of Europe's supply of natural gas. The FT reports that Gazprom has fulfilled its quotas to European customers, but has restricted top-up sales, which has caused reserves in Europe to dwindle.
MEPs have accused Gazprom of intentionally withholding supply of natural gas as a way of putting pressure on Brussels over the Nord Stream 2 pipeline, which was recently completed.
Read more: Nord Stream 2 pipeline is finally complete, says Gazprom
The pipeline is ready to be filled with gas, but it could take months for the necessary regulatory approvals required for operations to commence.
Critics of the pipeline are also concerned Nord Stream 2 will allow Russia to circumvent energy agreements with Ukraine, denying it valuable income, which could stand to threaten its stance as an independent nation.
Under the Trump administration, the US government was vehemently opposed to Nord Stream 2 for this very reason, while also worrying it could make Europe too reliant on what they referred to as an "unreliable foreign power".
However, under Biden, the nation finally eased sanctions on Nord Stream 2, eventually reaching a deal with Germany where the US explicitly stated it would block attempts for the pipeline to be used as a weapon against Ukraine.
Gazprom and the Kremlin have also hinted gas supply to Europe could increase once Nord Stream 2 is greenlit for use.
Granholm said: “Clearly we want to all have our eye on the issue of any manipulation of gas prices by hoarding or the failure to produce adequate supply.
“We are looking at this very seriously and we are united with our European allies in making sure you get adequate, affordable gas supply this winter.”
Washington has long championed the idea of Europe diversifying its energy mix to make it less reliable on Moscow.
The International Energy Agency (IEA) recently called on Russia to increase its natural gas supply to Europe, despite earlier attempts to convince global players to wind down oil & gas ventures as a way of combatting climate change.
Read more: Radical change needed en route to net-zero, IEA warns
It also blames the current energy crisis on several factors, mainly "a combination of a strong recovery in demand and tighter-than-expected supply, as well as several weather-related factors".
The firm executive director Fatih Birol stated that it was "inaccurate and misleading to lay the responsibility at the door of the clean energy transition".
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