MOSCOW, October 20. /TASS/. The situation on the gas market remains severe, with global gas prices increasing 3.5-fold since the beginning of 2021, according to Russian Deputy Prime Minister Alexander Novak, speaking at the President's meeting with members of the government.
"The situation on the gas market remains quite tense, primarily due to the fact that prices remain at a fairly high level. Prices in Europe average fluctuate around $1,000-1,100 [per 1,000 cubic meters], in the Asia-Pacific region - about $1,200 per 1,000 cubic meters of gas with premium," he said.
In total, since the beginning of the year, global gas prices have increased 3.5-fold, for coal - 3-4-fold, compared to 2020, depending on the brand, and electricity prices in Europe have increased 5-6 times since the beginning of the year, Novak added.
At the same time, Russia expects to see a significant increase in gas demand in the countries of the Asia-Pacific region in 2021, in particular in China - by 17%, in South Korea - by 18%, Novak added. In general, in the Asia-Pacific countries, gas demand is projected to grow by 7-8%.
"This year, gas consumption is expected to grow in China by about 17%. The same situation, around 18%, for South Korea, and for the Asia-Pacific region in general, there will be an additional 7-8% growth in gas demand," Novak said.
The European gas industry's crisis erupted this fall, when spot gas prices began to rise, exceeding $1,000 per 1,000 cubic meters and nearly reaching $2,000 per 1,000 cubic meters. Observers believe that a number of reasons contributed to the crisis. One of them is the explosive growth in Asian gas demand, which has resulted in an increase in Asian market prices and attracted supply from the European direction. The situation was exacerbated by the fact that Europe's share of wind generation fell. The main cause of the extreme volatility in the gas market, however, was the low volume of gas in storage facilities.