Middle East gas disruption is another wake-up call on Europe’s fossil fuel dependence

MEP for Ireland South and Leader of Fine Gael in the European Parliament, Sean Kelly, has warned that the latest surge in European gas prices following escalating conflict in the Middle East is a “clear wake-up call” about the dangers of Europe’s continued reliance on imported fossil fuels.

European gas prices have risen sharply after Iranian strikes on Qatar’s Ras Laffan LNG production facility halted exports and disrupted shipping through the Strait of Hormuz, a key global energy route.

Benchmark European gas prices have increased by almost 80 per cent since Friday.

MEP Kelly said the spike shows how geopolitical shocks thousands of kilometres away can quickly drive-up energy costs in Europe.

“When your energy system depends heavily on imported fossil fuels traded on global markets, events in distant regions quickly translate into higher energy costs here at home,” Kelly said.

“This is exactly what we are seeing again this week. Europe does not control these markets, and when disruption happens our citizens and businesses pay the price.”

Qatar accounts for around 20 per cent of global LNG supply, meaning disruptions there quickly ripple through global markets and push up prices as buyers compete for available cargoes.

Kelly warned that continued dependence on imported energy is not a long-term solution if Europe wants to be competitive.

“LNG is a global commodity, and cargoes will always flow to the highest bidder. In times of geopolitical tension, prices rise, and Irish and European citizens pays the price.”

He said the only durable solution is to reduce Europe’s reliance on fossil fuel imports altogether.

“That means accelerating renewable energy, strengthening our electricity grids, and investing in storage and flexibility so clean power can reliably run our economies.

“In todays volatile world, a decarbonised energy system powered by European renewable resources is has gone far beyond climate action and has emerged as the single most important aspect of achieving energy security.

“This latest shock should be another wake-up call for Ireland and for Europe to double down on the transition to indigenous energy and reduce our exposure to volatile global fossil fuel markets”, concluded MEP Kelly, member of the European Parliament’s Committee on Industry, Research and Energy (ITRE).