“European spot prices have reached 4,000 dollars per 1,000 cubic meters. According to conservative estimates, if this trend continues, prices will exceed $4,000 per 1,000 cubic meters,” Gazprom warns.
Russia’s Gazprom announced today that European gas prices could rise by an additional 60% to exceed $4,000 per 1,000 cubic meters this winter as the state-owned company’s exports and production continue to decline due to Western sanctions.
Natural gas flows from Russia have fallen this year after a pipeline from Kyiv was shut down following Moscow’s invasion of Ukraine in February and a dispute over parts of the pipeline’s equipment. Nord Stream 1resulting in an increase in natural gas prices.
“European spot prices have reached 4,000 dollars per 1,000 cubic meters. According to conservative estimates, if this trend continues, prices will exceed $4,000 per 1,000 cubic metersGazprom warns.
The wholesale price on the Dutch spot market reached in the spring at 335 euros per megawatt hour (MWh), at an all-time high. It has since fallen to €226 per MWh today, but remains at a much higher level than last year at the same time, when it was €46 per MWh.
Kyiv closed one of Gazprom’s export routes to Europe, while Gazprom reduced the flow to 20% of the capacity of the Nord Stream 1 pipeline to Germany under the pretext of a dispute over equipment.
In total, Gazprom’s exports fell by 36.2% to 78.5 billion cubic meters between Jan. 1 and Aug. 15, and production has fallen 13.2 percent to 274.8 billion cubic meters compared to the level of the same period last year, the Russian state-owned company said in a statement.
Gazprom’s output was down 32.2% so far in August, compared to 35.8% in July on a year-on-year basis, Evgeniy Suvorov, economist at CentroCreditBank, told MMI’s Telegram channel, adding that exports had fallen by 59% compared to 58.4% last month.
RES-EMP
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