"Blackmail of the Russian Federation ". Absolute record of gas prices in Europe
Среди ситуативных факторов роста цен на газ обозреватели называют уменьшение ветровой генерации в Европе. Однако главной причиной является сокращение поставок из России.
korrespondent.net
Gas prices in Europe have broken a historical record
Among the situational factors behind the rise in gas prices, observers name a decrease in wind generation in Europe. However, the main reason is the reduction in supplies from Russia.
Gas exchange prices in Europe have set a new historical record, surpassing the $ 2,000 mark for the first time. This comes amid expectations for a cold winter, news of reduced Russian gas supplies and uncertainty around Nord Stream 2. Correspondent.net tells the details.
An instrument of political influence
Spot prices for natural gas in Europe on December 21 set a new all-time record, surpassing $ 2,000 per 1,000 cubic meters, according to data from London's ICE stock exchange.
The cost of a gas futures for January delivery according to the TTF hub index in the Netherlands reached 174.61 euros per MWh or 2039 dollars per thousand cubic meters at the current exchange rate. The growth to the estimated price of the previous trading day amounted to 16.3 percent.
The previous record was set on October 6, when the spot gas price reached $ 1,969.2 per thousand cubic meters.
At that time, Russian President Vladimir Putin explained the sharp rise in spot gas prices in Europe with "thoughtless actions" and mistakes made by the EU authorities, who decided to curtail long-term contracts for gas supplies and reorient to exchange fuel trading.
“It has become absolutely obvious that this policy is erroneous - erroneous, since it does not take into account the specifics of the gas market due to a large number of uncertainties. As a result, now the gas price has broken all historical records: today it is already striving for two thousand dollars per thousand cubic meters is more than ten times the average price of last year, "he said.
Average daily temperatures in France, Germany and other European countries fall below zero, and forecasters predict frosts in January. But tariffs in payments, as reported by Bloomberg, are growing to new record levels along with high inflation.
Among the situational factors behind the rise in gas prices, observers name a decrease in wind generation in Europe. Wind farms produced less than ten percent of Europe's electricity at the start of this week, according to WindEurope, up from 20 percent last Sunday.
However, the main reasons for the new rapid jump in gas prices are believed to be the situation around Russian gas pipelines and the refusal of Russian Gazprom to increase gas supplies to Europe.
Today's growth took place against the backdrop of the Russian monopoly's refusal to reserve capacities for gas transit via the Yamal-Europe pipeline to Germany via Poland. After that, the physical flow of gas through the pipeline stopped and supplies were switched to reverse mode from Germany to Poland.
According to Gas Infrastructure Europe, European storage facilities are less than 60 percent full. This is more than 16 percent less than the average over the past five years.
The Kremlin called the situation "absolutely commercial" and forwarded the question to Gazprom, but they do not comment on the reasons for the stop there.
"Gazprom is supplying gas according to consumers' requests in full compliance with the existing contractual obligations," the press service of the Russian energy giant said.
Gazprom continues to reduce the volume of bookings for additional gas pipeline capacities for gas transit through Poland, limiting itself to obligations under a long-term contract. The Russian company also refused to buy out additional transit capacities of Ukraine at all.
The head of the company, Ukrainian GTS Operator, Serhiy Makogon, because of this, accused Gazprom of blackmailing Europe. He believes that in this way Russia is trying to speed up certification of the controversial Nord Stream-2 gas pipeline.
Despite sky-high prices for gas in the EU, available free transit capacities and despite the statements of the head of the Russian Federation on increasing supplies to the EU, Gazprom did not book additional capacities for January. Therefore, Gazprom does not plan to increase transit by more than 109 million cubic meters per day, which is stipulated by the existing contract. The conclusions are obvious - the blackmailing of Europe continues with the aim of an early certification, "- wrote Makogon on his Facebook page.
Many European politicians and experts agree with this point of view. Thus, the EU High Representative for Foreign and Security Policy Josep Borrell said on December 19 that Russia is using energy resources as an instrument of political influence.
Borrell agreed that Moscow is honoring its supply obligations, but stressed that "many believe that refusing to increase exports to Europe or fill Gazprom's storage facilities is a means of putting pressure on the EU."
A week and a half ago, Makogon said that he did not rule out the cessation of gas transit from Russia through the Ukrainian territory this winter.
“This is a political issue, not an economic one. We see that in recent months pressure on Ukraine has increased in all directions. This is the termination of the export of thermal coal to Ukraine from Russia, and the advancement of troops to the border, and the blocking of coal export from Kazakhstan. these events, it is possible that the transit of gas through Ukraine will also be stopped, "he said.
At the end of November, the head of Naftogaz, Yuri Vitrenko, announced Russia's reluctance to extend the gas transit contract. In his opinion, if the contract is not extended, the Nord Streams will strengthen Russia's control over gas supplies to Europe. This will make the European Union "more vulnerable to politically motivated supply disruptions and price surges," the head of Naftogaz said.
On December 17, Gazprom announced the start of filling the second string of the Nord Stream-2 gas pipeline with gas. This is necessary to "achieve the required level of volume and pressure." Earlier, commissioning work was completed on it, the company explained.
The pipeline must be approved by the German and European regulators to start. Germany must make a decision before January 8, 2022, then the European Commission will consider it for another two months, which also has the right to extend the period for another two months, until May 8, 2022, Bloomberg wrote.
The German government is now saying that Nord Stream 2 cannot be certified yet. Many politicians and experts in the West suggest using it as an instrument of pressure on Russia in order to discourage it from attacking Ukraine.