Natural gas prices in Europe soared today (Aug. 23) amid fears that winter power shortages could have a major impact on the region’s economy.
Gas futures prices rose 5.2% to 291 euros per megawatt hour after reaching a record high yesterday.
Russia’s Gazprom has announced that it will suspend gas deliveries through the Nord Stream pipeline for three days on August 31 for maintenance work. This has renewed concerns that gas deliveries will not be able to continue after the maintenance work is completed.
The decline in gas supply will also affect Europe’s efforts to stockpile gas for the winter.
Leon Izbicki, gas analyst at Energy Aspects, said gas prices could rise to as much as 400 euros per megawatt-hour when the Nord Stream pipeline stops delivering gas in September.
“Current prices are having a huge impact on European industrial gas demand. Our data suggest that industrial gas demand in Western Europe will decline by 15% by 2022,” said Leon Izbicki.