Global Energy Crisis Deepens
Severe Energy and Power Shortages Intensify Across Europe and South Asia Amid Supply Disruptions
Anonymous
Key Points
1
Bangladesh’s opposition proposed creating a joint government-opposition task force, or “cell,” to address the energy crisis, but the government provided no specific information on whether it would establish one.
2
Pakistan secured only 15 LNG cargoes between March and August—about one-quarter of its usual supply—including seven spot cargoes priced at $16–$22 per MMBtu and eight Qatari long-term cargoes priced at $7–$14 per MMBtu. The government rejected spot offers of $25–$27 per MMBtu because the effective consumer cost could reach $34 per MMBtu after taxes and other charges.
3
Pakistan’s Power Division is seeking 250–300 million cubic feet per day from the Sui Northern gas network, but only about 100 million cubic feet per day is available for the requested use, creating a substantial supply gap; a recent nuclear-power outage added further pressure before being resolved.
4
Kerala’s unusually high temperatures were measurable across the state: Punalur reached 36.2°C, or 4.3°C above normal, while Kottayam reached 35.2°C, 4.4°C above normal, during the first week of September, when the southwest monsoon would normally still be influencing conditions.
5
Europe’s energy shock has significantly worsened its competitiveness: the EU’s energy bill doubled to €1.8 trillion after the pandemic and during the early years of the Ukraine war, while EU companies still pay electricity prices two to three times higher than those in the United States and natural-gas prices four to five times higher.
Energy crises are spreading across South Asia and Europe, squeezing millions of people and threatening economic growth. Bloomberg reports that Britain's gas prices have hit their highest level since 2022 and doubled since the year began, while Alto warns that European natural gas prices are near three-year highs as disruptions through the Strait of Hormuz intensify competition for liquefied natural gas. Pakistan, Bangladesh, and India face acute shortages driven by geopolitical conflict, depleted fuel reserves, and extreme weather—with relief not expected until 2027 or later.
The crisis reflects a perfect storm of long-term policy failures, infrastructure weaknesses, and immediate shocks. Bangladesh's government and opposition both acknowledge decades of poor planning. Pakistan secured only 15 liquefied natural gas cargoes between March and August—roughly one-quarter of normal supply. Europe's energy bill has doubled to €1.8 trillion, leaving companies paying electricity two to three times more than US competitors and natural gas four to five times higher.
Pakistan Rationing Gas as LNG Supplies Plummet
Pakistan is imposing late-night electricity cuts and rationing gas supplies after securing far fewer shipments than usual. The country obtained only 15 liquefied natural gas cargoes from March through August. Seven spot cargoes cost $16–$22 per unit, while eight Qatari long-term contracts cost $7–$14. Pakistan rejected higher-priced spot offers at $25–$27 because consumer costs would reach $34 after taxes and charges.
Power officials need 250–300 million cubic feet of gas daily from the Sui Northern network. Only about 100 million cubic feet per day is available. A recent nuclear power outage worsened the crisis before being resolved. Winter demand and potential Strait of Hormuz closures could make shortages worse.
Bangladesh Blames Decades of Failed Planning
Bangladesh's government and opposition lawmakers agreed that past policy failures triggered the energy crisis. Opposition lawmakers also blamed current corruption and indecision. The government projects gradual relief starting in 2027 and a full end to the crisis by 2030. Opposition leaders proposed creating a joint government-opposition task force, or 'cell,' to manage the crisis, but the government gave no details on whether it would establish one.
The delay signals deep political divisions over how to fix infrastructure problems that accumulated over decades. Both sides acknowledge the roots run deep, but neither has committed to urgent, coordinated action on a timeline measured in years rather than months.
Kerala's Heat Wave Drains Hydropower and Sparks Cuts
Unusually high temperatures, weak monsoon rains, depleted hydropower reserves, and coal shortages have combined to trigger power cuts across Kerala state in India. In early September, Punalur reached 36.2°C—4.3 degrees above normal—while Kottayam hit 35.2°C, about 4.4 degrees above normal. These temperatures arrived during weeks when the monsoon should still be cooling the region.
Hydropower plants that typically supply reliable electricity have less water than usual. Coal shipments have fallen short. Electricity repayment obligations to other states add further strain. Together, these factors force the state to cut power to households and businesses on a rotating schedule.
Europe's Energy Shock Threatens Competitiveness and Growth
Alto reports that European natural gas prices stand near their highest level in over three years as the race to refill storage before winter intensifies competition for liquefied natural gas. Ongoing disruptions through the Strait of Hormuz are cutting available supplies. Bloomberg confirms that households face the highest winter energy costs in three years, with prices far outpacing those in the United States.
The energy shock has gutted EU competitiveness. Europe's energy bill doubled to €1.8 trillion after the pandemic and early Ukraine war years. Today, EU companies pay electricity prices two to three times higher than US competitors and natural-gas prices four to five times higher. This cost gap threatens long-term strategic investment and economic growth across the bloc.
Sentiment
Mostly NegativeNEGATIVENEUTRALPOSITIVE
Publishers
15
Articles
6
Reach
21
A
AnonymousAuthor
