Back Of The Envelope (BOTE) posts pull together basic industry facts and use simplified models to help outline challenges and opportunities. The Ukraine situation is pushing the EU to dramatically pull back on its consumption of Russian Natural Gas. The article uses publicly available sources to show the magnitude of the reduction and an idea of how much would have to be replaced.
The crisis in European energy imports has the IEA calling for a reduction of imports from Russia of 30-50 BCM of natural gas while the EU is calling for a 100 BCM reduction within 1 year. This reduction is from a base of about 155 BCM of Russian imports worth USD$108B (down from a peak 2012 value of UD$173B) representing 45% of all EU natural gas imports and 40% of total gas consumption.
Our next post will look at just how many tanker ships would be needed to replace the natural gas lost through a ban.
Here's what the IEA is suggesting it will take to reduce Russian Natural Gas consumption in the EU - https://www.iea.org/reports/a-10-point-plan-to-reduce-the-european-unions-reliance-on-russian-natural-gas
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