Gazprom (GAZP.MM) said Tuesday that European gas prices might rise 60% to over $4,000 per 1,000 cubic meters this winter as the company’s exports and production continue to decrease amid Western sanctions.

Gas shipments from Russia, Europe’s largest supplier, are down this year after one route was halted when Moscow launched soldiers into Ukraine in February and after sanctions sparked a disagreement over Nord Stream 1’s equipment. Gas costs have risen. read

“Spot petrol prices in Europe are $2,500. (per 1,000 cubic metres). According to realistic projections, prices will approach $4,000 per 1,000 cubic metres this winter “said Gazprom.

Spring Dutch wholesale gas prices hit 335 euros per megawatt hour (MWh). Since then, they’ve dropped to 226 euros per MWh on Tuesday, but they’re still higher than a year ago when they were 46 euros per MWh.

Kyiv has closed one of Gazprom’s export routes to Europe, while Gazprom has limited Nord Stream 1 deliveries to 20% of capacity amid an equipment disagreement. read

Overall, Gazprom’s gas exports decreased 36.2% to 78.5 billion cubic metres between Jan. 1 and Aug. 15, while output was down 13.2% to 274.8 billion cubic metres, it added.

Evgeniy Suvorov, an economist at CentroCreditBank, wrote on his Telegram channel MMI that Gazprom’s output was down 32.2% in August vs a drop of 35.8% in July. Export was down 59% from negative 58.4% last month.

Source: Reuters

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