Natural gas prices in Europe could exceed $4,000 per thousand cubic meters in the coming fall and winter season, according to Gazprom CEO Alexey Miller on Wednesday.
'Natural gas prices regularly trade above the $3,000 band per thousand cubic meters. At the peak of the autumn and winter period (in Europe), natural gas prices may exceed $4,000 per thousand cubic meters,' he said.
Miller declared there is a 'rally' in natural gas prices in Europe, noting that more competition from Asian markets for LNG supplies along with seasonal effects have put pressure on prices.
Europe faces an energy crisis this winter with high gas prices. This has prompted many European countries to devise plans to wean off Russian supplies through energy-saving measures in preparation for potential disruptions to Russian gas imports, amid growing tensions with the Kremlin over its war in Ukraine.
Consequently, the EU aims to reduce natural gas imports by two-thirds by the end of the year. The bloc, as part of its emergency energy plan, also agreed in July to reduce gas consumption by 15% to alleviate the risk of having reductions or a complete halt to supplies via the Nord Stream 1 from Russia to Europe.
The EU has slapped six sets of sanctions on Russia since the start of the war on Ukraine on Feb. 24.
Gazprom’s head also suggested that the reasons for the significant changes in natural gas markets “are the wrong decisions and sanction policies of Western regulators.'
In a statement released by Gazprom, Miller said Gazprom's natural gas production reached 288.1 billion cubic meters (bcm) as of this year, out of which 154.7 bcm was supplied to the domestic market, while 82.2 bcm was shipped to the countries outside the Commonwealth of Independent States.
'Despite the decline in exports to foreign markets, our calculations forecast that Gazprom's financial results will be significantly higher for our 2022 revenues than for 2021,' he said.
Russia's natural gas shipments to China increased 60% in the first eight months of this year compared to the same period last year, according to Miller.
(Anadolu Agency, August 31, 2022)
