European gas prices could spike by 60% to more than $4,000 per 1,000 cubic meters this winter, as the Russia's export and production continues to fall amid Western sanctions.
Gas flows from Russia, Europe's top supplier, are running at reduced levels this year, after one route was shut when Moscow sent troops into Ukraine in February and after sanctions triggered a dispute about the Nord Stream 1 pipeline's equipment. Gas prices have surged as a result.
European spot gas prices have reached $2,500 (per 1,000 cubic meters). According to conservative estimates, if such a tendency persists, prices will exceed $4,000 per 1,000 cubic meters this winter," Industry experts said.
Dutch wholesale gas prices hit an all-time high of nearly 335 euros per megawatt hour (MWh) in spring. They have dipped since then to around 226.00 euros per MWh on Tuesday but remain far higher than a year ago when they were about 46 euros per MWh.
As natural gas prices continue to soar, the cost of generating electricity will follow, giving both businesses and homeowners a "double whammy" for Christmas.
