HomeMediaLatest NewsReasons for the record rise in gas prices in Europe

Reasons for the record rise in gas prices in Europe

30 September 2021

Gromov Alexey I. Principal Director on Energy Studies, Head of the Energy Department

Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, explained in an interview with Pravda.Ru what did the record rise in gas prices cause in Europe.

According to him, the sharp rise in gas prices was stipulated by a whole set of factors. First of all, the economies of Europe and Asia began to recover much faster than it had been predicted, so there was an increased demand for this valuable resource.

"Taking into account the fact that Europe is a so-called closing market for liquefied natural gas, all its flows that are not supplied by long-term contracts, went to Asia. Europe found itself face to face with gas supplies under long-term contracts from Gazprom and other companies", - Gromov said.

He is convinced that the current volumes of fuel are not enough for the European countries today, because there is simply nowhere to get gas. This problem was also strongly influenced by the low occupancy of gas storage facilities.

“On the eve of the winter heating season, Europe has a task number 1 - to fill the storage facilities within a high current demand for gas,” the expert concluded.

Earlier, the gas price in Europe with the opening of trading on Wednesday, September 29, again exceeded $ 1000 per 1,000 cubic meters.
Gromov Alexey I. Principal Director on Energy Studies, Head of the Energy Department
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