Russia’s Gazprom: Gas prices to skyrocket 60% this winter

Russian state gas company Gazprom announced on Tuesday that European gas prices could jump over 60 percent to more than $4,000 per 1,000 cubic metres this winter. Moreover, the company’s own export and production proceeds to fall amid Western sanctions.

Russian gas is operating at lower levels this year, after one route was shut due to the war between Ukraine and Russia. As a result, gas prices will increase.

“European spot gas prices have reached $2,500 (per 1,000 cubic metres). According to conservative estimates, if such a tendency persists. Prices will exceed $4,000 per 1,000 cubic metres this winter,” Gazprom said.

Dutch wholesale gas prices reach the highest cost of 335 euros per megawatt hour (MWh) in spring.

Gazprom’s gas exports declined by 36.2 percent to 78.5 billion cubic metres between Jan. 1 and Aug. 15. Its production was decreased 13.2 percent to 274.8 billion cubic metres comparing to a year ago, it stated in a statement.

“Gazprom’s output was down by 32.2 percent so far in August versus a fall of 35.8 percent in July in annual terms. The export was down by 59% from minus 58.4% last month.” Evgeniy Suvorov, an economist at CentroCreditBank, pointed on his Telegram channel MMI.