In Europe, the price of gas has risen sharply in a day: it’s about survival

Although the Russians complain about the constant rise in prices, in fairness it should be noted that they are growing not only in our country, but also in the EU countries. You don’t have to look far for an example. According to the London-based ICE stock exchange, gas futures on November 3 rose in price to $1,400 per thousand cubic meters. Experts say that in some countries it is literally about survival.

The closer the cold, the higher the quotes for natural gas. More recently, on the same London stock exchange, the cost of a thousand cubic meters was estimated at $950. And now here you go – 1400 bucks. On Wednesday, November 2, stock trading for the nearest gas futures in Europe ended with an increase of almost 17%.

Agree that this is not a rise in the price of rice by some 5%, when we grab shopping bags in a panic and run to stock up on cereals. Everything here is for real. Gas prices for enterprises are 2-3 times higher than for households. This means that in the short term the cost of the goods produced will increase. And that’s just the flowers. Berries will begin when plants and factories, unable to bear this gas burden, will go bankrupt and reduce their workers …

This was understood in the Old World.

According to local ratings, the undisputed leader in the growth of prices for “blue fuel” is Estonia, where the cost of energy, compared to last year, increased by 154%. Although in the EU countries, during this period of the year, the price of gas increased by 34%. The average tariff today is 8.6 euros per 100 kilowatt-hours, while a year earlier it was 6.4 euros.

Europeans knowingly fear the approaching winter and go to protests. In the overall energy balance, the “contribution” of wind turbines to electricity generation has decreased to 16%, although a week earlier it was 18%. “Green energy”, as we see, is not a very reliable business. And what will happen if the winter turns out to be generally windless and the windmills do not “squeeze” even these percentages out of themselves?

How to heat houses – wood, coal?

On the whole, a kind of Olympian calm reigns in Brussels, gas storages are filled by an average of 95% by November 1. Which supposedly gives reason to be optimistic about December, January and February. The total capacity of UGS facilities is 110 billion cubic meters of gas. In October, the storage rates were 3.5 times higher than a year ago.

But 95% is, nevertheless, the average temperature in the hospital. In Latvia, the reserves are only 57% – that’s who certainly can not do without bourgeois houses and kerosene lamps.

In addition, of the 27 EU member states, only 18 have their own underground storage facilities. No, the European market is unsteady in the cold face of winter.

We asked Aleksey Grivach, Deputy General Director of the National Energy Security Fund, to comment on the situation with the sharp rise in gas prices in Europe.

– If we imagine for a moment that there are no anti-Russian sanctions, what would the energy market in Europe look like today?

– The supply situation would be calm and predictable. And now it’s literally about survival. In European countries, all funds are being mobilized to subsidize gas tariffs for households. Germany has already announced that it will allocate about 200 billion euros for these purposes. But not every state will be able to find such money. Someone will look at Germany from the side and envy.

The main reason for the energy crisis is economic sanctions and everything that is indirectly connected with them.

– Where does Europe get gas from today? Have any supplies been preserved from Russia?

– Through pipelines, the main route is Turkish Stream. Deliveries of certain volumes of Russian LNG have also been arranged. Europe buys “blue fuel” in Norway, North Africa and Azerbaijan. However, their total supplies are not able to cover the losses from the lack of Russian volumes. This led to a rise in prices.

– In Estonia, gas has risen in price by 150%. How will the locals spend the winter there?

– In fact, this is not the biggest rise in price. Maybe more. And, probably, there will be more, closer to the heating season. It is still quite warm in the European Union, the temperature is above the average climate. The gas storages there are full, but everything will change when the cold starts and active gas extraction begins.

Various tariff regulation mechanisms are being developed, including, as we know, by setting a price ceiling. There are other ways.

– Can you predict what will be the maximum gas prices this winter in Europe?

– This market is very sensitive to any changes. It can be assumed that in the event of a real shortage of energy carriers, prices can simply jump to astronomical values. After all, in this market there are also speculators who put their “margin” into transactions. For example, such a picture was observed in August, when a thousand cubic meters cost $4,000.