Leonhard Birnbaum, CEO of the Essen-based energy conglomerate Eon, has expressed concern regarding a potential further rise in natural gas prices due to the conflict in Iran. Birnbaum told the “Frankfurter Allgemeine Sonntagszeitung” that Europe will be forced to meet its demand using the short-term spot market for Liquefied Natural Gas (LNG). He warned that this situation will lead to high gas prices across both Germany and Europe, with the possibility of seeing even higher costs than those currently observed.
Birnbaum stated that it is “difficult to imagine how gas prices could become inexpensive in the next two years.” Furthermore, he anticipates that the soaring gas prices will particularly impact industry. He predicted that Asian manufacturers will be the first to drastically reduce consumption, followed by European industries.
Amid these market tensions, the energy manager offered assurances to his customers. Eon guaranteed that despite the unstable conditions in the energy market, the company will fully supply its customers during the coming winter heating season. Birnbaum confirmed that their gas customers can rely on them, noting that Eon has not only secured the necessary quantities but has also purchased them at fixed, predetermined prices. He added that there will be no price increases for Eon customers before the end of the year.
