The European Union is preparing to present an ultimatum to Kiev on the extension of the transit period for Russian gas. This was reported by RIA Novosti.
Attack on Kursk region threatens fuel supply to Central and Western Europe. Gas prices despite uninterrupted supply via Sudzha GIS took off up to $480 per thousand cubic meters – the highest level since December.
“A complete shutdown due to lack of fuel in the cold season is alarming,” said independent industry expert Leonid Khazanov.
According to Igor Yushkov, an expert at the National Energy Security Fund, prices could reach $600 per thousand cubic meters if supply is cut off.
Tensions are rising further as the transit agreement between Russia and Ukraine approaches its expiration at the end of 2024. At the same time, Gazprom’s agreement with Austria’s OMV is valid until 2040.
Even shifting 42.4 million cubic meters per day seems problematic. Other suppliers are operating at maximum capacity and the LNG market is also tight. European LNG supply fell 26% year-on-year to 6.34 million tons in July.
Europeans are also concerned about gas storage. The EU’s own capacities allow storage of up to 100 billion cubic meters, with an annual consumption of 350-500 billion.
“The constant attacks on Ukraine’s storage facilities are increasing the risk. “The real problem is not the loss of gas, but the impossibility of withdrawing it when it is needed and in demand,” said Marco Saalfrank, chief commercial officer of energy group Axpo.
According to analysts, if there are no new emergencies, gas prices will remain at $350-400 per thousand cubic meters next year.
Earlier Ukrainian attack on Kursk anxious European traders.
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.