Europe faces painful new normal of higher natural gas prices

The industrial woes Europe faced in 2022—high energy prices and depressed economic conditions resulting from Russia’s decision to turn off its supply of natural gas to the region—are set to continue in 2023, according to economists and industry leaders. The European Union’s economic outlook for 2023 has weakened significantly, Paolo Gentiloni, the European Commissioner for economy, said at a press conference in November. The commission forecasts that the region’s economy will grow just 0.3% in 2023 and 1.6% in 2024. Or as Peter Huntsman, CEO of the US chemical maker Huntsman, put it in a recent call with stock analysts: Europe continues to be a basket case. There just seems to be a great deal of uncertainty. A silver lining is that natural gas prices have fallen from their record highs in the summer of 2022—when they forced some chemical companies to idle or close plants—and are now below what © 2023 Chemical & Engineering News.