New Delhi, March 24 -- European gas prices are unlikely to surge to the extreme levels seen in 2022, as the region is now better positioned to handle energy shocks compared to the early phase of the Russia-Ukraine conflict, according to a report by ING Bank.

The report stated, "We do not believe European gas prices will trade to the peaks seen in 2022; global gas markets are relatively better supplied, while a large pipeline of LNG export capacity is coming onto the market in the years ahead."

It noted that despite the relatively improved supply outlook, natural gas continues to play a critical role in electricity pricing in Europe. Under the marginal pricing system, the most expensive source of power, usually natural gas, sets the elec...