🚨🇪🇺 Europe’s Gas Plan: Ban Russia, Pay More, Hope for Warm Winter With European gas prices hitting roughly $1,000 per 1,000 cubic meters this week, the EU is preparing to ban the remaining Russian liquefied natural gas (LNG) imports from January 1. Winter is approaching, reserves are thin, and Europe's shopping list is about to get shorter. As the war in the Persian Gulf disrupts shipments through the Strait of Hormuz, European and Asian buyers are chasing the same available cargoes. Buying little gas directly from Qatar offers no escape: Asian customers missing their deliveries turn up at the same auction, with their own checkbooks. With EU storage just 74% full on October 14 and Germany at 60%, according to Gas Infrastructure Europe, there is less gas tucked away for a cold spell. More deliveries will be needed during the heating season, when falling temperatures can send everyone shopping at once. Although the EU has built more LNG terminals since 2022 and the European Commission says the infrastructure can meet winter demand, a terminal cannot conjure up a tanker. Europe has more room to unload gas, but still has to find it and pay for it. Even lower demand comes with an uncomfortable footnote, as some chemical, fertilizer and metals plants have closed or moved since the last energy crisis. Some of Europe's breathing room comes from factories that have stopped breathing altogether. For those still operating, expensive gas raises the cost of heat, electricity and production, leaving businesses to swallow the loss, pass it on or cut output. Households get their turn when tariffs and contracts reset: the wholesale price surge takes time to reach the bill, but the delay is hardly a discount. A cold winter combined with continued disruption to Qatari exports could lift prices to $1,200–1,300 per 1,000 cubic meters, according to estimates from Russian investment firm Finam. Weather and supply will decide how far the squeeze goes. Into this market comes the Russian LNG ban, requiring replacement supplies halfway through the heating season. EU rules allow a pause of up to four weeks during a declared supply emergency, which buys time without securing cheaper gas. Unless affordable replacement cargoes arrive, European households and factories will fund the policy through higher bills, lower spending and further production cuts. @NewRulesGeo❗Follow us on X