22.09.202111:14 Forex Analysis & Reviews: Europe faces gas crisis

The world's largest gas producers will meet on September 21-23 to address many of this year's problems. Among them is the recently-observed gas crisis in Europe, which pushes prices to above record highs. Some countries also face the risk of having no electricity in the coming months.

Didier Holleaux, executive vice president of Engie SA, said there is not a lot of action to resolve this issue.

But Turkey's Deputy Energy Minister Alparslan Bayraktar said the government is negotiating new gas contracts with Gazprom in an effort to buy the same amount of LNG as last year.

Turkey also plans to start gas production from recent deposits in the Black Sea in 2023. Bayraktarn said that will reduce the country's dependence on gas imports from 100% to 75%.

Meanwhile, Qatar's Energy Minister Saad Al-Kaabi noted that demand for LNG is huge. This is why the country is investing billions of dollars to increase production, despite the fact that the project will take years.

In Asia, LNG prices soared by almost 50% in September, up to $ 27.19 per million btu. This is the energy equivalent of $ 155 per barrel of oil.

As such, Indonesia is planning to expand its use of renewable energy sources. Arifin Tasrif, Energy Minister of Indonesia said it will raise the volume of electricity production from renewable sources to 70% by 2040.

Going back, Mohammed Barkindo, secretary general of OPEC, said the current gas shortage in Europe requires additional investments in fossil fuels.