FSUOGM: EU plans to phase out Russian gas quickly will be "extremely challenging"

The EU’s plan to cut Russian gas purchases by two thirds by the end of this year will be “extremely challenging” to achieve, even if the issue of contractual obligations is ignored, the Oxford Institute for Energy Studies (OIES) has said in a report. 

Under its REPowerEU plan, the European Commission is looking to achieve the reduction in Russian imports by expanding LNG supply by 50bn cubic metres, increasing deliveries from other pipeline suppliers by 10 bcm and ramping up biomethane production by 3.5 bcm. It is also targeting a 14 bcm cut in gas demand through energy saving, a further 4 bcm reduction through greater use of rooftop solar installations and heat pumps, and a 20 bcm cut in power sector demand by bringing more wind and solar energy online.

At the same time, the Commission wants EU gas storage facilities to be 90% full by the start of October, to strengthen the bloc’s energy security amid the risk that Russia could cut off supply.

“Overall, the achievement of the seven-point plan looks extremely challenging, even if we ignore the issues in relation to the contractual problems of reducing EU imports by two thirds,” the OIES report stated.

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