The Problem of Hedging Risks in the European Energy Strategy: The Role and Place of Natural Gas

The research analyzes the current state of the EU natural gas market and identifies trends in its development. The authors applied various methods, including description, synthesis, system analysis, and comprehensive research. The research object is the energy markets of the EU countries. The theoretical basis of the research used to analyze the state of the industry is industry and academic publications, reports of major energy companies, data from international institutions, and official government releases. At the beginning of 2022, the crisis around Ukraine caused significant changes in the geopolitical and economic landscape, creating challenges and disrupting the global energy market. The EU adapted its energy balance during the year, redirecting natural gas supplies and promptly finding a temporary replacement for large volumes from Russia. According to different European government agencies, the key shocks of the crisis have been avoided. Gas prices have reverted to levels seen before the crisis. Storage facilities are at full capacity. Europe is benefitting from unseasonably mild weather, a wider range of suppliers, and successful governmental efforts to decrease energy consumption. The EU is planning to proceed with the large-scale development of green energy and the construction of LNG terminals, which will later be transformed into hydrogen ones. Optimization of natural gas supply chains will be allegedly achieved through the active development of gas infrastructure and the conclusion of agreements with new partners. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023.