Gazprom raises prices for gas exports to Europe

After a meeting with Gazprom, two investment banks noted yesterday that the company expects the average price for 1000 cubic meters of gas this year to be between 295 and 330 dollars, Bloomberg writes. Earlier this year, Gazprom forecast an average price between $200 and $206.

Europe not a priority

Perhaps even more annoying than the high price: according to the analysts, increasing gas exports to Europe is not a priority either. First, Gazprom wants to replenish the stocks in Russia, only then can it possibly be looked at increasing supplies to Europe.

Meanwhile, energy markets in the EU are in turmoil. The gas price on the wholesale market, where energy suppliers and large consumers purchase gas, has exploded in recent weeks.

This has to do with a series of factors. In short: due to the poor weather in the spring, we were able to build up few stocks and the demand for energy has increased enormously due to the rapidly improving economy. The fear is then that an extremely cold winter can cause too little gas.

Get rid of gas first for large consumers

If there really is a shortage – the Ministry of Economic Affairs has previously stated that it estimates this chance to be ‘very small’ – then you do not have to worry about being left out in the cold. In the emergency scenario, large industrial consumers are first removed from the gas, so that citizens remain warm.

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