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Energy crisis in Europe

Price of Russian gas for EU under long-term contracts reaches $250-300 — Novak

The Deputy Prime Minister noted that Russia had always supported concluding long-term contracts since these types of contracts maintained stability in the gas market and reduced its volatility

MOSCOW, December 24. /TASS/. The price of Russian gas for European countries under long-term contracts now reaches $250-300 per 1,000 cubic meters, Russian Deputy Prime Minister Alexander Novak said in an interview with Rossiya 24 TV channel.

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Russia’s oil output will grow by 2.1%, gas - by around 10% in 2021 — Novak

"Today, the countries that receive [gas] under long-term contracts, Germany, Serbia, and other countries, they receive it at around $250-300 [per 1,000 cubic meters]," he said.

Novak added that Russia has always supported concluding long-term contracts since these types of contracts maintain stability in the gas market and reduce its volatility.

The global gas market anticipated a supply shortfall in 2021, owing to a fast recovery in Asian demand and a lack of LNG capacity. The rising demand for gas in Asia drove up prices and cut off the main supply of LNG, exacerbating Europe's dilemma. There, the issue was exacerbated by insufficient supplies in gas storage facilities. Against this backdrop, the price of gas at the Dutch TTF hub surpassed $1,000 per 1,000 cubic meters for the first time in history this fall and $2,000 per 1,000 cubic meters in December. The price of futures on the TTF hub, on the other hand, is volatile and does not reflect the true price of physical deliveries to Europe. Under Gazprom contracts, the average gas export price in 2021 will be $280 per 1,000 cubic meters.

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Energy crisis in Europe

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