The main reasons for the rise in gas prices in the European Union, which in the outgoing year exceeded $ 2 thousand per thousand cubic meters, are the rejection of long-term contracts in favor of spot ones, long-term investments in the industry and a drop in the domestic production of blue fuel in Europe. This was stated in an interview with RBC by the Deputy Prime Minister of the Russian Federation Alexander Novak.
According to him, the spot assumes the satisfaction of bids in the near future, without understanding what will happen on the market in the medium and long term.
Among other reasons for the gas crisis, Novak named the fall in its own gas production in Europe, the cold winter of 2020/21, as well as the risks of a repeat of the cold winter and gas shortages.
At the same time, the Deputy Prime Minister assured that Russia is ready to increase gas production and supplies to meet demand in Europe in any volume, but that long-term contracts are needed.
At the same time, Novak found it difficult to predict when the period of high gas prices in Europe will end, since, according to him, sufficiency of supply is necessary for this, PRIME notes.
We also add that the United States over the past weekend increased the number of tankers with natural gas supplies to Europe by a third. So, according to Bloomberg, there are now 20 tankers with American liquefied natural gas (LNG) on their way to Europe, although 15 tankers were intended for European consumers on December 24.
Source: Rosbalt
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