Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, commented to the Internet portal Politonline.Ru regarding possible factors that could reduce the current high gas prices in Europe.
There are several factors that can stop the rise in gas prices in Europe, Gromov notes. And the first is the weakening of demand.
The second factor is the occupancy rate of European storage facilities. At the moment, they are 70% full - and as soon as the 80% mark is taken, gas prices can start to "slow down".
"If the situation with demand for gas in Asia changes and the regional market calms down a bit, then supplies for it will gradually decline. Accordingly, this will affect the market in Europe," he clarifies.
If these factors are not implemented, then Europe should prepare for the autumn-winter heating season with prices above $ 640 per thousand cubic meters, the expert expects.
"The third and most important factor is the possible launch of Nord Stream 2. If the gas pipeline receives a certificate approved by the European Commission in the near future, we can hope to launch it in October or November. After the launch, gas prices may stabilize, and then - go to decline", - Gromov says.
"$ 840 is an extremely high price. But if the three specified factors do not work, and the winter is cold, then gas prices in Europe will remain at a high level", - Gromov concludes.
Subscribe for updates
and be the first to know about new publications