Russia’s Gazprom warns gas prices in Europe could rise another 60%

Gazprom’s logo is seen on the facade of a business center in Saint Petersburg, Russia, March 31, 2022. REUTERS/Reuters/File Photo Photographer

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  • This content was produced in Russia where the law limits coverage of Russian military operations in Ukraine

MOSCOW, Aug 16 (Reuters) – Russian gas company Gazprom (GAZP.MM) said on Tuesday that gas prices in Europe could climb 60% to more than $4,000 per 1,000 cubic meters this winter, as the company’s exports and production continue to climb. fall in the middle of Western sanctions.

Gas flows from Russia, Europe’s biggest supplier, are slashed this year, after a route was closed when Moscow sent troops to Ukraine in February and after sanctions sparked a dispute over the Nord Stream 1 gas pipeline equipment. Gas prices have risen accordingly. Read more

“Spot gas prices in Europe have reached $2,500 (per 1,000 cubic meters). Conservative estimates suggest that if such a trend persists, prices will exceed $4,000 per 1,000 cubic meters this winter,” Gazprom said. .

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Wholesale gas prices in the Netherlands hit a record high of almost 335 euros per megawatt hour (MWh) in the spring. They have since fallen to around 226.00 euros per MWh on Tuesday but remain much higher than a year ago when they were around 46 euros per MWh.

Kyiv has closed one of Gazprom’s export routes to Europe, while Gazprom has cut supplies to just 20% of the capacity of the Nord Stream 1 gas pipeline to Germany amid equipment dispute . Read more

Overall, Gazprom’s gas exports fell 36.2% to 78.5 billion cubic meters between January 1 and August 15 and production fell 13.2% to 274.8 billion. cubic meters compared to a year ago, it said in a statement.

Gazprom’s output has fallen 32.2% so far in August compared to a 35.8% fall in July in annual terms, Evgeniy Suvorov, an economist at CentroCreditBank, said on his Telegram channel MMI, adding that exports were down 59% from minus 58.4% last month.

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Reuters reporting; Editing by David Goodman and Edmund Blair

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