A strong rise in gas prices in Europe leads to degradation of demand, said Elena Burmistrova, deputy chairman of the board of Gazprom and head of Gazprom Export, in a video message to the participants of the international gas conference Flame.
“I repeat once again: we are not interested in either record low or record high gas prices. The latter lead to degradation of gas demand in Europe, which obviously contradicts our interests as a producer and supplier,” she said.
According to Burmistrova, such accusations against the company are increasingly appearing in the media.
The deputy chairman of the board stressed that Gazprom wants to see the European market as balanced and predictable so that both the company and consumers can successfully develop their business.
Since the beginning of the year, the EU’s own gas production has fallen by ten billion cubic meters, and LNG supplies to the European market have dropped sharply, she recalled. At the same time, Gazprom has increased gas exports to European consumers.
“In this context, it is strange for us to hear accusations that Gazprom’s actions led to the rise in gas prices in Europe,” Burmistrova concluded.
Energy crisis in Europe
Gas prices in Europe have risen sharply in recent months. Back in early August, futures traded at $ 515 per thousand cubic meters, but by the end of September they more than doubled, and on October 6 they jumped to a historic high of $ 1937. All this increases the cost of electricity for EU residents.
Experts believe that the prerequisites for this situation are the low level of storage capacity on the continent, limited supply from suppliers and high demand for LNG in Asia.
On October 27, Vladimir Putin instructed Gazprom to increase the volume of fuel pumped into European underground storage facilities, after which the price of gas in Europe began to decline. As noted by Dmitry Marinchenko, director of the group for natural resources and commodities at Fitch, in a commentary to RIA Novosti, gas prices are even more volatile than oil, so it is impossible to predict their movement in the short term.