Gazprom says gas prices could destabilize European economy, Auto News, ET Auto

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On Wednesday, the price of gas at the Dutch TTF hub climbed to 155 euros per megawatt hour (MWh) before falling after Russian President Vladimir Putin’s remarks.

Soaring gas prices in Europe could destabilize the region’s economy, the head of the export arm of Russian gas producer Gazprom said on Thursday at a forum, but noted that cooperation between producers and consumers could help balance the market.

Prices have jumped over 800% this year, raising concerns about inflation and fuel poverty this winter. They eased this week, providing some relief to the markets.

“Currently, the European spot market shows high price volatility and confuses buyers and sellers, (this) carries the risk of destabilizing the entire regional economy,” said Elena Burmistrova, head of Gazprom Export.

“The European spot market only reflects the current state of demand and supply, but is not the pricing tool that provides long-term equilibrium.”

Burmistrova reiterated that Gazprom is fulfilling its obligations under its long-term contracts, which its biggest European customers have also confirmed.

“We provide gas in addition to contract requests where we have such a technical possibility,” she said.

On Wednesday, the price of gas at the Dutch TTF hub climbed to 155 euros per megawatt hour (MWh) before falling after Russian President Vladimir Putin’s remarks. It had fallen to 102 euros per MWh Thursday.

Putin said Moscow does not need any turmoil in the gas market, adding that Russia should sell more gas on its St. Petersburg stock exchange, which offers gas to European spot buyers. It was not immediately clear which routes Russia would use for this.

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