The decline in gas prices in Europe is due to the compression of the market, the expert said

The burner gas stove. Archive photo

The decline in stock prices for gas in Europe is connected with the filling of underground storage, and compression in the last six months of the European gas market, said RIA Novosti chief Director of energy Institute for energy and Finance (IEF) Alexey Gromov.

“Two factors. The first Europeans despite the limitations of Russian gas supplies has performed the tasks that were set by the European Commission, and they filled the European stores by 90%. It happened a few days ago. In essence, this means that traders are selling gas on the spot, calm down and understand that the physical shortage of gas in Europe in the coming months, be safe even in the condition of turning off the “Nord stream”, – said the expert.

“Second… In fact we are seeing a major trend that over the past six months, while new no statistics, but in Europe, even without specter saving gas has been compression of the gas market. Due to the fact, then passed out a number of gas-intensive industries, people began to save gas and businesses,” added Gromov.

According to experts, the magnitude of savings in gas for the first 6 months in the European region was 10-12%. “If you assume that the gas consumption in Europe is at the end of 2021 412 billion cubic meters, 10-12% yoy can reach 40-45 billion cubic meters,” said Gromov, Recalling that the capacity of Nord stream is 55 billion cubic meters per year. In addition, the expert explained, must still earn special measures to reduce gas consumption proposed by the European Commission. They will also affect the compression of the gas market.

The stock price of gas in Europe ended Wednesday with a drop of up to 13%. Next – October – futures (index largest European hub TTF) fell to nearly $ 2,100. Also on August 26 quotes rose above $ 3,500 per thousand cubic meters for the first time since March, the news about the suspension for three days for maintenance of the pipeline “Nord stream”, which supplies gas from Russia to Europe. On Friday, Gazprom reported the malfunction of a single working unit, and the pipeline has been stopped indefinitely.