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Gazprom does not rule out gas prices in Europe over $4,000 in winter

Meanwhile, the exchange price of gas in Europe on March 7, 2022, reached almost $3,900 per 1,000 cubic meters for the first time in history

© Vitaly Nevar/TASS

MOSCOW, August 16. /TASS/. Gazprom does not rule out that gas prices in Europe in winter may rise above the record-breaking figure $4,000 per 1,000 cubic meters, the holding said on Tuesday.

"We would like to note, that on spot exchanges in Europe, gas prices have surpassed the figure of $2,500. According to conservative estimates, if the trend continues, prices will exceed $4,000 per 1,000 cubic meters in winter," Gazprom said.

Earlier, spot price of gas in Europe on London’s ICE exchange exceeded $2,450 per 1,000 cubic meters for the first time since March 8. This is happening against the backdrop of rising spot gas prices in Asia, the shutdown of several gas production and transportation facilities in Norway for scheduled repairs until the end of August, as well as rising temperatures and a declining wind generation in Europe.

Meanwhile, the exchange price of gas in Europe on March 7, 2022, reached almost $3,900 per 1,000 cubic meters for the first time in history.

Gazprom reported that over 7.5 months of 2022, it reduced gas exports to non-CIS countries by 36.2% to 78.5 bln cubic meters.

Since July 27, the Nord Stream gas pipeline has been used at 20% of its maximum capacity due to the shutdown of several gas turbines. One of them, made in Canada by Siemens Energy, was sent to Montreal for repairs. Due to Ottawa's sanctions against Moscow, the manufacturer initially refused to return the repaired equipment to Germany, but after numerous requests from Germany, it was decided to return the turbine. On July 25, Gazprom announced the forced shutdown of another gas turbine engine at the Portovaya compressor station. Thus, only one turbine remains in working order.

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