Natural Gas Prices in Europe Reach New Record High — Russia’s Gazprom Warns of 60% Price Increase in Gas in Coming Months

 

In 2018 during his speech to the UN General Assembly President Donald Trump lodged a warning to Germany about their country’s reliance on Russian energy.

The German delegation laughed on camera at the remarks.

In June Russia announced it would reduce natural gas flows through a key European pipeline by roughly 40% into Germany.

German politicians called this a political move.

The Russians don’t care what they call it. They will have to deal with it.

But Russia was not yet finished.

In July Russia announced it was cutting gas to Germany and Europe by another 20%.

On Tuesday natural gas prices reached a new record high in Europe. And Russia announced up to a 60% price increase in the coming cold weather months.

Reuters reported:

Russian state gas company Gazprom said today that European gas prices could spike by 60% to more than US$4,000 per 1,000 cubic metres this winter, as the company’s own export and production continue to fall amid western sanctions.

Gas flows from Russia, Europe’s top supplier, are running at reduced levels this year, after one route was shut when Moscow sent troops into Ukraine in February and after sanctions triggered a dispute about the Nord Stream 1 pipeline’s equipment.

Gas prices have surged as a result.

“European spot gas prices have reached US$2,500 (per 1,000 cubic metres). According to conservative estimates, if such a tendency persists, prices will exceed US$4,000 per 1,000 cubic metres this winter,” Gazprom said.