Russia predicts its average gas export price will more than double this year to $730 per 1,000 cubic meters before gradually falling through the end of 2025 as pipeline gas exports decline, a forecast showed. from the Ministry of Economy seen by Reuters.
Gas flows from Russia, Europe’s main supplier, have been at reduced levels this year after a route was closed when Moscow sent troops to Ukraine in February.
In addition, some European countries have been cut off from supplies for refusing to pay for gas in rubles, and a dispute has erupted over repairs to a turbine on the Nord Stream 1 gas pipeline, which links Russia and Germany.
Gas prices rose as a result.
Russia’s Economy Ministry predicts that Gazprom’s gas exports will fall to 170.4 billion cubic meters (bcm) this year, from a forecast of 185 bcm released in May and down from 205.6 bcm exported in 2021.
The ministry anticipates that gas volumes will continue to fall beyond this year, but gave no explanation.
As a result of an already tight supply, Gazprom’s average gas price was estimated at US$730 per 1,000 cubic meters (cm) in 2022, more than double the US$304.6 charged last year, and representing a 40% increase from the previous forecast of $523.3.
Oil output increasing
Russia has started to gradually increase its oil production after sanctions-related restrictions and as Asian buyers ramped up purchases, prompting Moscow to raise its production and export forecasts through the end of 2025, the document showed.
Gazprom also said gas supplies were increasing to China, but did not provide details. Europe remains by far the biggest market for Russian gas.
Higher oil export volumes, along with rising gas prices, would help Russia earn $337.5 billion from energy exports this year and $255.8 billion next.
The Economy Ministry did not respond to a request for comment.
Source: CNN Brasil