LONDON (Business – Insiders) -Russia’s Gazprom said European natural-gas prices could surge by 60% this winter as the state-energy giant slows exports to Europe.
“European spot gas prices have broken through $2,500 (per 1,000 cubic meters). According to conservative estimates, if this trend continues, prices will exceed $4,000 per 1,000 cubic meters this winter,” Gazprom said in a statement.
Gazprom produced 13.2% less natural gas from January 1 to August 15 this year than in the same period in 2021, the company added. It didn’t provide reasons for the decline.
Natural-gas flows from Russia to Europe have fallen since the war started. In May, Ukraine shut one of Gazprom’s major routes for transport gas to Russia. Meanwhile, Gazprom has cut natural-gas flows to Europe via the key Nord Stream 1 pipeline to about 20% of its capacity, citing technical difficulties due to sanctions against Russia over the Ukraine war.