It could happen..23 Aug 2022 19:09
Izvestia: European gas prices may soar to $4,000 per 1,000 cubic meters in September
European gas prices may reach $4,000 per 1,000 cubic meters as early as in the first half of September, said experts interviewed by Izvestia. On August 22, gas stock prices passed $3,000 in the European Union as Russia’s Gazprom gas giant announced on August 19 that gas flows through the Nord Stream pipeline would be suspended between August 31 and September 2 due to the maintenance of the last one remaining gas compressor.
"A decline in Russian gas supplies and high demand are the main reasons for the rise in Europe’s gas prices. Given that the heating season is coming and European underground storage facilities aren’t full enough, prices can be expected to grow further. In such a situation, they may hit the $4,000 mark in the first weeks of September," BitRiver External Relations Director Andrey Loboda pointed out.
European gas prices keep rising because market participants have been under pressure for a while amid reports about the risk of the full suspension of Nord Stream 1, Head of Analytical Research at the Iva Partners investment company Dmitry Alexandrov explained.
Europe has no alternative to Russian pipeline gas, Leading Analyst at Freedom Finance Global Natalya Milchakova emphasized. In particular, Germany has failed to sign a contract with Qatar for LNG deliveries because Doha’s demand of a 20-year agreement was unacceptable for Berlin. As for the United States, it is only capable of providing very small amounts of LNG to Europe, mostly to Spain and Portugal who don’t receive Russian pipeline gas, the expert added. According to Milchakova, the only possible option for the EU is to launch the Nord Stream 2 pipeline. This is what will make European gas prices fall dramatically, the analyst said.
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