EU gas likely to remain tight for years, a persistent issue for industries and consumers

High prices have already destroyed about 10% of European gas demand but curtailed flows from Nord Stream 1 could require another 10% decline in gas use. Industrial demand is likely to take the biggest hit from these curtailments and we look at the Aerospace and Defense industry specifically to understand how various parts of it may be impacted. Europe has already committed to using other sources of energy, from LNG (liquid natural gas) to renewables, but this will take time and in the interim, many European companies will be forced to find their own solutions, which may include moving production from Europe. You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life.

 

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