[Asia Economy Reporter Ki-min Lee] Russian state-owned gas company Gazprom forecasted on the 16th (local time) that European gas prices could rise an additional 60% this winter compared to current levels.
According to Sputnik News and others, Gazprom stated that gas production and export volumes are decreasing due to Western sanctions and provided a forecast for European gas prices this winter.
Currently, European gas prices stand at $2,500 (approximately 3.29 million KRW) per 1,000㎥. Gazprom explained that if this trend continues, conservatively, prices could exceed $4,000 (approximately 5.25 million KRW) per 1,000㎥ during the winter.
From January 1 to August 15 this year, Gazprom's gas production was 274.8 billion ㎥, a 13.2% decrease compared to 417 billion ㎥ during the same period last year.
Since Russia's invasion of Ukraine in February, it has been reducing gas supplies to Europe as retaliation against sanctions imposed by Europe.
Since mid-June, Gazprom has reduced natural gas supplies through Nord Stream 1, the most important pipeline supplying gas to Europe, to 40% of the pipeline's capacity, citing delays in returning pipeline turbines. On the 27th of last month, the supply was further reduced to 20% of the pipeline's capacity.
Due to Russia's actions, gas prices in Europe have surged. The Dutch TTF futures price, a benchmark for European natural gas prices, was around 70 euros per MWh in early February before the war, but as of the 15th, it reached 220 euros (September contract), tripling in value.
Although this is lower than the 335 euros in early March immediately after Russia's invasion of Ukraine, it is about five times higher than the $46 price at the same time last year.
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