Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, commented to RIA Novosti on the decline in stock prices for gas in Europe.
The decrease in exchange prices for gas in Europe is due to the filling of underground storage facilities and the contraction of the European gas market over the past six months, Alexey Gromov explained to RIA Novosti.
According to the expert, the scale of gas savings in the first 6 months in the European region amounted to 10-12%. "If we assume that gas consumption in Europe is 412 billion cubic meters in 2021, then 10-12% on an annualized basis can amount to 40-45 billion cubic meters," Gromov said, recalling that the capacity of Nord Stream is 55 billion cubic meters per year. In addition, the expert explained, special measures to reduce gas consumption, proposed by the European Commission, should still work. They will also affect the contraction of the gas market.
"Two factors. The first is that the Europeans, despite the restrictions on Russian gas supplies, fulfilled the tasks set by the European Commission, namely, they filled European storage facilities by 90%. This happened just the other day. In essence, this means that traders selling gas on the spot have calmed down and understand that the physical shortage of gas in Europe in the coming months does not threaten even in the conditions of the shutdown of the Nord Stream,” the expert said.
"Second... In fact, we are observing an important trend that over the past six months, while there are no new statistics yet, in Europe, even without special measures to save gas, the gas market has contracted. Due to the fact that a number of gas-intensive industries have been shut down, people and enterprises have become save gas," Gromov added.
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