Europe’s Energy Import Gateway Sees Possible Tough Winter Ahead

(Bloomberg) -- Europe might face challenges to its energy security next winter, even after building up inventories, according to the head of the continent’s busiest port.

“Next winter can still prove difficult,” Boudewijn Siemons, interim chief executive of the Port of Rotterdam, said in an interview. European countries could scramble again to buy liquefied natural gas if there’s cold weather and if the Chinese economy rebounds, he said.

As Europe’s energy import gateway, the Port of Rotterdam has played a role in helping boost LNG import capabilities after Russia’s invasion of Ukraine resulted in high energy costs. While Europe has battled last year’s crisis with above-average inventories, trade has been weighed down by persistent inflation and weak economic conditions in the first half.

The port released figures Thursday that showed a 5.5% decline in cargo throughput to 220.7 million tons in the first half of the year. The fall was mainly seen in coal throughput, container and commodities. It expects a “minor fall” in throughput volumes in 2023. 

“The container product is becoming less and less restricted,” Siemons said. “If things go on the way they are going, then there might be a slow and limited recovery in the second half of the year” depending on the path of energy prices and inflation, he said.

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