The price of natural gas in Europe could double in winter and reach $2,500 per 1,000 cubic meters in the event of prolonged cold weather. This was stated by the CEO of „Gazprom“ Alexey Miller.
The forecast comes against the backdrop of a rise in gas prices above $1,200 per 1,000 cubic meters in October. According to „Gazprom“ This is a level that Western experts expected to be reached only at the peak of autumn-winter consumption.
“If the winter is cold, gas prices in Europe could reach peak values of $2,500 per 1,000 cubic meters“, said Alexey Miller.Low stocks in European storage facilities
As a factor for the possible new price increase, “Gazprom“ points to low injection levels in underground gas storage facilities. In Germany, which is the largest gas consumer in Europe, storage facilities are 61.6% full.
By the end of October, the average occupancy of European gas storage facilities was 75.5% of capacity. These values are listed by the Russian state corporation as record lows.
The price is already above the levels of the autumn forecasts
The spot price of natural gas on European exchanges exceeded $1,150 per 1,000 cubic meters on Wednesday. This is the first time such a level has been reached since December 2022, reports News.bg.
The difference between the indicated levels of over $1,150 and over $1,200 reflects different price levels cited in the announcement about the market movement in October.
Earlier this month, Miller said that the trend towards high natural gas prices in Europe is likely to continue in the long term. His new forecast is conditional and is related to the development of winter consumption and temperatures.
Sources: news.bg