Sweden Introduces 'Early Warning' Regime Due to Gas Shortage Threat

The Swedish Energy Agency, following Denmark's example, has announced the implementation of an 'early warning' regime in response to a potential gas shortage. The regulator has warned about the possible deterioration of the situation related to gas supply.

“This is a signal from the Swedish Energy Agency to participants in the gas network connected to industry and consumers in the west of the country that the market is overloaded and there may be a deterioration in the supply situation,” the report states.

Currently, the situation regarding gas supplies in Sweden is stable, and reserves are “sufficient until autumn.” However, the agency has warned that any deterioration of the situation would be accompanied by rising prices. Preliminary estimates suggest that the largest gas shortage might occur in the winter of 2022-2023. The 'early warning' regime in Sweden will remain in effect until the government provides further notice.