LONDON: The European Union is preparing to take action to secure gas supplies this winter if its biggest supplier, Russia, cuts exports due to the crisis in Ukraine, a draft document seen by Reuters showed.
The measures could include making use of existing powers to ban companies from selling liquefied natural gas (LNG) tanker cargoes outside Europe, keep more gas in reserve, and order industry to stop using gas.
The draft document, which confirms information from a European Commission source, said the EU could take emergency action to ensure that more coordinated use is made of facilities for converting LNG back into natural gas and of gas storage capacity.
This could be done "when the normal functioning of the market does not lead to the optimal use of those facilities," the document said.
Tankers from countries like Qatar and Algeria bring LNG to European via Atlantic and Mediterranean ports, but European buyers often re-sell those cargoes abroad for higher prices rather than supplying their domestic market.
Despite the proposed EU measures, southeast Europe will struggle to find enough gas to meet demand this winter as its infrastructure is not well enough developed to bring non-Russian gas into the region.
Russia is Europe's biggest supplier of oil, coal and natural gas, and its gas pipelines through Ukraine are currently the subject of political manoeuvring as Europe and Moscow clash over the latter's military action in Ukraine.
Russia's state-controlled gas giant Gazprom meets around a third of Europe's gas demand, and it sends almost half of these supplies via Ukraine.
While western Europe needs relatively little Russian gas, the dependency rises steadily towards the East, with some EU countries such as Bulgaria and the Baltic states relying entirely on Gazprom, triggering fears of freezing households this winter should Russian supplies be cut.
In order to prepare for such a disruption, the EU has drafted a list of short-term measures.
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European Union prepares powers to deal with Russian winter gas cut