High Gas Prices Could Disrupt Europe’s Economy

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The sharply rising gas prices could disrupt the European economy. The head of the export branch of the Russian state gas company Gazprom said this at an energy conference in Saint Petersburg.

 

According to her, Gazprom wants a stable and predictable gas market in Europe.

Gazprom executive Elena Boermistrova says there are wide price swings in the European gas market, causing both buyers and sellers to become “disoriented, with risks of destabilizing the entire regional economy”. According to her, better cooperation between producers and consumers can ensure balance in the market.

Boermistrova reiterated Gazprom’s position that the company is meeting its obligations under longer-term gas contracts. On Wednesday, Russian President Vladimir Putin said he was ready to ramp up gas supplies to Europe for the coming winter amid global supply concerns. Gas prices then fell after reaching new records earlier in the day.

The energy minister of Qatar, the world’s largest exporter of liquefied natural gas (LNG), said gas prices had reached “unhealthy” levels. According to him, current prices are not good for both producers and consumers.

Qatar is investing 30 billion dollars, or 26 billion euros, to increase natural gas production, but that will take years. According to the energy minister, it isn’t easy to increase production in the short term because production is already at maximum capacity. In addition, Qatar’s LNG demand is huge and not every customer demand can be met, he said earlier.

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