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G20 leaders won’t discuss specific measures to overcome gas crisis, says Russian Sherpa

However, the energy market situation will be discussed, Svetlana Lukash noted

MOSCOW, October 29. /TASS/. G20 leaders are not going to touch upon specific measures to overcome the gas crisis during the summit, but the overall energy market predicament is one of the topics on the agenda, Russia’s G20 Sherpa Svetlana Lukash revealed to reporters on Friday.

"Specific measures (to avoid volatility - TASS) will not be discussed. This is still a matter of bilateral relations, and certainly not a G20 issue. The energy market situation will surely be discussed," she specified.

According to her, the G20 leaders will touch upon the energy market crisis, given that is discussed both worldwide and in Russia. Lukash noted that the countries face the task of trying to find a common approach in resolving problematic relations and situations on the gas market, even if there are disagreements over the reasons and their sources.

"We need to find a shared solution and a common denominator. This is the mutual objective. I think the summit will be very interesting," she said.

The upcoming G20 summit will take place on October 30-31 in Rome.

Europe’s gas market crisis

The European gas crisis exploded this autumn, after spot gas prices began to skyrocket past $1,000 per 1,000 cubic meters, nearly hitting $2,000 per 1,000 cubic meters amid low occupancy levels at gas storage facilities.

According to observers, the crisis was triggered by a number of factors. One of them was the explosive growth in gas demand from Asia, which sparked an upsurge in prices on the Asian market, as well as an outflow of supplies from European routes. The situation was aggravated by the fact that the share of wind generation in Europe plunged.

However, the main reason for the gas market’s high volatility was the low capacity rate of gas storage facilities. As of mid-October, European underground gas storage facilities were filled by 71% of the volume of gas that was taken from them last season.

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