Russian state-owned Gazprom said today that winter gas prices could jump by as much as 60% to 400 euros a megawatt hour as its exports and production continue to fall due to what it says are Western sanctions.
“European natural gas prices have reached $2,500 per 1,000 cubic meters (€240/MWh). According to conservative estimates, if this trend continues, prices will exceed $4,000 per 1,000 cubic meters (€380/MWh ) this winter,” Gazprom said.
In the spring, the wholesale prices of natural gas shot up to a historic high of 335 euros per megawatt hour. They have since fallen to €240 (today), but remain remarkably higher than a year ago when they were hovering around €46.
It is recalled that Gazprom has reduced natural gas supplies through the critical Nord Stream 1 to Germany to just 20% of the pipeline’s capacity, following a dispute over its turbines that needed repair.
As the Russian energy giant said in a statement, overall from the beginning of 2022 until yesterday, natural gas exports to Europe were down by 36.2% to 78.5 billion cubic meters, while its production decreased by 13.2 % to 274.8 billion cubic meters compared to a year ago.
Source: Capital
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