Gazprom will completely stop gas supplies to Europe via the Nord Stream pipeline – this statement led to another jump in gas prices around the world. Bloomberg notes that the market has been swamped by "bidding wars": buyers continue to raise prices to avoid gas shortages in the upcoming heating season.
During trading on Monday, the cost of a British thermal unit (BTU) in the Asian market set a new high and exceeded $60, which is equivalent to $2,217.6 per thousand cubic meters of gas. The agency notes that on Friday, before Gazprom's statements, gas prices in Asia fell by 1.3% and reached $55.277 per BTU (or $2,043.04 per thousand cubic meters).
Energy companies in Europe and Asia are actively competing for liquefied natural gas (LNG) supplies from the US, Qatar and Nigeria. The reason is a sharp reduction in gas supplies from Russia via Nord Stream, which is currently operating at 20% capacity. Moreover, as of August 31, Gazprom announced a complete halt to pipeline deliveries due to “necessary repairs” to a single gas turbine.
Gazprom's decision led to a sharp increase in gas prices around the world. In the European market, the shortage of gas is much stronger: on Monday, August 22, the cost of a thousand cubic meters of gas rose to $3,014, updating multi-month highs. The shortage of gas in the European market is associated with a sharp reduction in supplies from Russia.
Gazprom insists that the problems are related to the sanctions: the company cannot service gas turbines due to Western restrictions. The European authorities believe that Russia is deliberately using the gas as an instrument of pressure on the EU for supporting Ukraine.
