The EU energy crunch has affected the bloc's economy; to this effect, Gazprom is warning those involved to be ready for shocking increases in natural gas prices. It bodes ill for the European Union that chose to sanction Russia, which led to the current situation.
EU Sanctions Could Raise Gas Prices
Last Tuesday, the Russian energy provider warned that another hike in natural gas prices might be as high as 60% this winter, reported RT.
The company announced on Telegram that spot gas prices had hit $2,500. If this trend continues, prices will reach $4,000 per thousand cubic meters in winter, according to conservative estimates.
Its exports to the bloc are already at diminished levels this year, all attributable to the sanctions and technical issues from the special operation, noted The Thread Times.
Gas imports into the EU fell precipitously between January 1 and August 15, causing concern and a search for alternative sources to compensate for Russia's diminishing supply. Nonetheless, the gas company stated that it had provided the required quantity based on the requests it had received.
Gazprom is still the largest natural gas supplier, while natural gas prices rose sharply as the supplies pumped in have lessened due to the Eu energy crunch.
Early Tuesday, the cost of gas in the TTF hub in the Netherlands had reached $2,600 per thousand cubic meters.
Based on data from the London Stock Exchange ICE, it is about 13% over the other day's settlement. More Russian gas has left Europe and is destined for Asia via the Power of Siberia pipeline that transported more than the required amount, said the firm.
China has been supplied from January to July with 60.9% more gas than the EU, which is more than in 2021 overall.
Electricity Hits All-Time High
Last Tuesday, the cost of power in the EU reached a record high due to the cost of Russian-supplied gas, which is impacted by less flowing through the pipeline.
Market data provider Nord Pool noted the benchmark for day-ahead prices in Germany rose to €490.79 ($497) per megawatt-hour from €218.03 in June, cited Viuku.
Today's prices are much higher than last August a year ago. The EU's energy industry is being shaken by uncertainties about whether power plants can produce enough electricity this winter in the wake of restricting energy supplies.
It was unavoidable that the rise in gas prices would dent Europeans' wallets. Less supply due to the negative impacts of Ukraine sanctions and a turbine malfunction in Germany, all of which are linked to Joe Biden's sanctions.
Bloc countries have been looking for alternative sources of liquefied natural gas (LNG), such as increased pipeline gas supplies from Norway, Algeria, and Azerbaijan.
According to Josep Borrell, the EU may not be able to obtain the additional gas it requires from non-Russian suppliers, the previous supply cannot be matched.
Meanwhile, France has increasingly relied on nuclear energy to produce extra power, while other EU countries have reopened coal-fired power plants.
An EU energy crunch is due to Gazprom raising natural gas prices as the bloc enacts sanctions on Russian energy, which Vladimir Putin calls economic suicide led by the Biden White House as the orchestrator of Europe's ruin.
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