Energy prices for crude oil, natural gas and electricity are rising for two main reasons. First, the Strait of Hormuz, a key shipping route for global oil and gas supplies, is effectively blocked. Second, Qatar\u2019s Ras Laffan Industrial City has suffered damage. The site is one of the world\u2019s most important facilities to produce liquefied natural gas, or LNG, and helium.<\/p>\n
ETH Zurich has already taken steps to cushion potential shortages and price shocks affecting helium (see yesterday\u2019s internal news<\/a>). How exposed, then, is ETH Zurich to developments in the energy sources natural gas and liquefied natural gas, which are traded in far larger volumes?<\/p>\n Gas prices are rising more moderately in Switzerland <\/p>\n Overall, natural gas prices in Switzerland have risen less sharply than crude oil prices. Even so, depending on the consumption category or region, they are currently around 50 to 80 per cent above the long-term average (see gas price trends on\u00a0external page the Swiss Federal Office of Energy\u2019s Energy Dashboard<\/a>).\u00a0<\/p>\n Swiss end\u2011user prices have reacted less sharply because many suppliers rely on long\u2011term procurement strategies, and Europe\u2019s dependence on the Middle East for gas is far lower than for oil. In the gas market, reliance on supplies from the United States is greater.<\/p>\n Many Swiss gas suppliers source natural gas both on the daily spot market and through long\u2011term contracts with fixed volumes and prices. This mixed approach helps to cushion extreme price shocks.<\/p>\n Diversified gas procurement helps to cushion price spikes <\/p>\n ETH Zurich sources its natural gas and biogas from the local gas supplier Energie 360\u00b0, which is majority\u2011owned by the City of Zurich. \u201cAt present, we have not observed any significant rise in gas prices,\u201d says Dario D\u2019Ercole, Head of Building Services and Energy in the Engineering and Systems Department, which is responsible for ETH Zurich\u2019s secure, cost\u2011effective and climate\u2011friendly energy supply<\/a>.<\/p>\n \u201cHowever, price effects resulting from the disrupted supply routes in the Persian Gulf may be felt in a few months,\u201d says Dario D\u2019Ercole, adding: \u201cThat said, gas prices are significantly more stable today than they were in 2022, when the war against Ukraine began and gas supplies from Russia consequently ceased.\u201d<\/p>\n Switzerland and Europe are now far better positioned than they were at the time. Since then, several LNG terminals have been built along Europe\u2019s coastline, making gas supplies more independent and resilient. The natural gas currently supplied to ETH Zurich comes mainly from Norway, Azerbaijan, North Africa and the United States.<\/p>\n Reducing fossil fuels to a minimum by 2030 <\/p>\n However, ETH Zurich does not source liquefied natural gas itself, instead procuring natural gas through established supply chains. The gas is used primarily to heat buildings and as a process gas in research facilities, for example for steam generation and for air humidification in animal facilities, laboratories and cleanrooms.<\/p>\n