Europe Must Better Prepare for Gas Crunch, U.S. Envoy Says

(Bloomberg) -- Europe isn’t doing enough to prepare for a potential gas crunch this winter, especially as U.S. deliveries of LNG can’t be increased further, according to the State Department’s envoy for energy security.

Amos Hochstein said on Friday that U.S. liquefied natural gas shipments to the continent were running at full capacity, and -- if the winter is harsh -- additional supplies would need to be sent to Europe through its gas pipeline.

“I worry because I don’t think we should ever be in a position knowing that if it’s a cold winter, there’s not enough supply,” he told reporters during a visit to Warsaw. Everyone “has to be prepared and to think about this more than I’m seeing currently in Europe.”

Hochstein said he’s concerned because gas storage in Europe is below the five-year average, which has led to record prices in some markets, and that Russia -- a major source of the continent’s energy -- “is coming off an extended period of inexplicably low supply.” 

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