Natural gas prices in Europe could remain high until 2023 and are unlikely to fall even in the upcoming summer, Bloomberg predicts.
The energy crisis is exacerbated by France’s shift away from nuclear power, as well as reports about Russia possibly suspending gas deliveries to Europe.
The certification of the Nord Stream 2 pipeline remains incomplete. According to Germany’s energy regulator, it will likely not be finished in the first half of 2022.
Over the week spanning December 20-25, 2021, gas prices sharply declined. However, long-term contracts with expiration in summer 2022 continue to hit new highs, reaching $1,200 per 1,000 m3 at the end of 2021. Gas contracts with delivery in summer were around $1,000 per 1,000 m3 during the previous week, rising from $600 per 1,000 m3 in November.
Energy prices in Europe skyrocketed in the autumn of 2021. In early August 2021, Dutch TTF gas futures were trading at $515 per 1,000 m3. By late September, TTF futures increased twofold.
