HomeMediaLatest NewsOn the end of “the era of cheap gas"

On the end of “the era of cheap gas"

18 August 2021

Salikhov Marcel R. President, Principal Director on Economic Studies, Head of the Economic Department

Marcel Salikhov, President of the Institute for Energy and Finance, commented to Gazeta.ru on the dynamics of gas prices in the European market.

Last year, gas prices fell significantly against the backdrop of a pandemic - in Europe below $ 100 per 1,000 cubic meters, in the USA - sometimes up to $ 50-55 dollars.

“Currently, spot gas prices (TTF) in Europe exceed $ 500 per 1,000 cubic meters. This is practically the historically maximum level. Gas prices in Asia are close to $ 600 per 1,000 cubic meters", - Marcel Salikhov, president of the Institute for Energy and Finance said.

Salikhov believes that the environmental factor is also important against the background of the fight against climate change.

“Rising prices for CO2 emissions in Europe, which have also nearly tripled in 12 months, are contributing to a stronger rise in gas prices. Higher emission prices increase the competitiveness of gas generation in comparison with coal one,” the expert said.

According to him, there is no guarantee that current prices will not last long, but will likely return to their historical range within a couple of years.

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