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Gazprom expects EU gas prices to spike by 60% this winter

Russia’s Gazprom expects that gas prices in the European Union will soar by 60 per cent to more than 4,000 US dollars per 1,000 cubic metres this winter.

“European spot gas prices have reached 2,500 US dollars per 1,000 cubic metres. According to conservative estimates, if the trend continues, prices will exceed 4,000 US dollars per 1 thousand cubic meters in winter,” said Russia’s state energy giant.

Gas flows from Russia to Europe decreased significantly as Ukraine shut down a key transit pipeline transiting almost a third of Russian gas supplies to Europe. Then, Gazprom reduced supplies to only 20 per cent of the capacity of the Nord Stream 1 pipeline to Germany amid the equipment dispute.

According to the latest data published by Gazprom, the company produced 274.8 billion cubic meters (bcm) of gas this year, 41.7 bcm less than last year. Exports directed outside of the Commonwealth of Independent States (CIS) amounted to 78.5 billion cubic meters, a 36.2 per cent decrease compared to the same period last year.

In the meantime, gas exports to China are growing under a bilateral long-term contract and deliveries regularly go beyond the daily contract quantities, informed Gazprom.

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