HomeMediaLatest NewsGas is getting more expensive in Europe

Gas is getting more expensive in Europe

10 October 2023

Belogoryev Alexey M. Research and Development Director, Director of the Center for Energy strategic analysis and forecasting

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented on the possible reasons for the gas prices increase in Europe to Business FM.

Exchange prices for gas in Europe have approached the level of $ 550 per thousand cubic meters for the first time since mid-summer. Possible reasons are the termination of gas supplies from an offshore field near the border of Israel and Lebanon, as well as the shutdown of the Balticconnector gas pipeline between Finland and Estonia.

Alexey Belogoryev notes:

"Balticconnector is a small gas pipeline. The main thing is that it serves the purely local market of Finland and Estonia and does not affect the overall gas balance in the EU in any way, because this market is isolated. Therefore, I think that this factor is practically not taken into account in the dynamics of stock prices. Israel may have some influence due to the decision taken, according to which exports to Egypt from a field in the Gaza Strip is temporarily stopped, but this is also a fairly local story, I don't think it could cause a significant reduction. The main reason is connected with Australia, with the new threat of strikes at Chevron LNG plants. This is what pushes up prices in both Europe and Asia."

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