Gas prices in Europe fell after Russian President Vladimir Putin ordered Gazprom to increase gas supplies to the EU. About it testify data from the London stock exchange ICE.
The gas price dropped from $ 1,041 per thousand cubic meters to $ 1008 per thousand cubic meters. During the day, the cost fell by more than four percent.
Vladimir Putin called on Gazprom to increase the volume of gas in European storage facilities, which should help Europe, which is facing an energy crisis. He made the corresponding statement at a meeting on the resource potential of Yamal.
Gazprom is to start scheduled work on supplies to Europe after gas has been pumped into underground storage facilities in Russia. According to the president, additional fuel volumes will stabilize prices on the European energy market. The head of Gazprom, Alexei Miller, said that the company will finish pumping gas into Russian underground storage facilities by November 8th.
Europe is facing an energy crisis due to increased consumption and higher gas prices. The high cost of gas has prompted governments and companies to turn to other sources of fuel, which has led to higher prices for other energy sources. At the beginning of October, gas prices were approaching $ 2,000 per thousand cubic meters, but then they decreased. On October 27, the value of November futures hovers around $ 1,050.
Slovenian Infrastructure Minister Ernej Vrtovec, who chaired the EU Council meeting, has found a way out of the European energy crisis. The politician said that the countries of the bloc should use nuclear energy to ensure energy independence. Alternative sources, according to the minister, will not be enough.
Vrtovec noted that more public and private investments in the development of renewable energy are needed to achieve the goals of zero carbon emissions by 2050.
European Energy Commissioner Kadri Simson believes that Europe needs to become less dependent on gas imports and more actively use other energy sources. To this end, Simson suggested investing more in the development of green energy. The European Commissioner also promised to provide a new list of rules by the end of 2021, which will motivate the countries of the block to quickly switch to renewable energy sources.
According to Bloomberg, the Norwegian international energy company Equinor will bail out Europe amid fuel shortages. A major competitor of Gazprom will increase gas supplies to the European market.
Equinor CEO Anders Opedal said the Norwegian energy giant has decided to stop pumping gas into the Gina Krog field on the North Sea shelf, which was used to increase oil production using the gas lift method. This method involves the injection of compressed gas into the wells, which increases the pressure in the oil reservoir. Instead, Gazprom’s competitor decided to export the released volume.
Serhiy Pereloma, Acting General Director of Ukrtransgaz, the operator of UGS in Ukraine, said that Ukraine offers European countries to use their underground gas storage facilities (UGS) to store strategic fuel reserves.
Pereloma added that in order to ensure energy security during peak periods of consumption, European countries should have 25-30 percent of gas from the annual level in stock, but not all countries have the necessary UGS capacities.
European countries will steal fuel from each other in an attempt to save their populations from freezing this winter, according to analysts at Bloomberg. It is noted that gas storage facilities in the states of the Old World are 71 percent full, while normally this figure should be 20 percent more.
Analysts suggest that in the event of the promised frost, the governments of the countries will decide to ban the export of gas in order to save it for the needs of their own citizens. The introduction of such a measure has already been announced by the President of Serbia Aleksandar Vucic – he promised to ban the export of electricity, “so that people have something to keep warm.” Similar discussions are under way in Norway, which is the largest energy exporter in Europe.
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