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The European Energy Crisis and the Consequences for the Global Natural Gas Market

Author

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  • Simone Emiliozzi
  • Fabrizio Ferriani
  • Andrea Gazzani

Abstract

The Russian invasion of Ukraine in February 2022 led to severe disruptions in the European gas market with significant repercussions on a global scale. The conflict caused a surge in energy prices, a major reshuffling of global natural gas flows, and a shift in the policy-makers’ agendas toward energy supply security. This paper provides a comprehensive review of the developments in the global gas market in the aftermath of the war in Ukraine, focusing in particular on the European gas market and on global LNG trade flows. We first review the characteristics of the gas market in terms of both pricing benchmarks and contractual terms. Next, we analyze the changes to LNG and natural gas production, consumption, and trade flows throughout the European energy crisis. Finally, we review the main policy response to the energy crisis and present some considerations on the gas market outlook. JEL Classification: L95, P28, Q35

Suggested Citation

  • Simone Emiliozzi & Fabrizio Ferriani & Andrea Gazzani, 2025. "The European Energy Crisis and the Consequences for the Global Natural Gas Market," The Energy Journal, , vol. 46(1), pages 119-145, January.
    • Handle: RePEc:sae:enejou:v:46:y:2025:i:1:p:119-145
    DOI: 10.1177/01956574241290640
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    1. Marco Taboga, 2024. "The potential macroeconomic relevance of critical materials: some preliminary evidence," Questioni di Economia e Finanza (Occasional Papers) 897, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    natural gas; energy crisis; LNG; fragmentation;
    All these keywords.

    JEL classification:

    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources

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