Gas is cheap and can get even cheaper

Photo of Naglio Navakas (VŽ).

Gas market indices show a downward trend. In November, the gas price may decrease to 200 EUR/MWh, compared to 350 EUR/MWh in August.

The positive news, according to Margus Kaasik, chairman of the board of the Estonian gas company Eesti Gaas, is that gas prices, which stormed new records in July and August, have started to fall.

“At the moment, the gas market indices in November and December show a price of around EUR 200, but since the price has recently been falling very fast, it is possible that it will decrease to EUR 150 by November”, M. Kaasika quotes

Natural gas prices in Europe fell 9.3% to their lowest level in September, Bloomberg reports. Goldman Sachs analysts expect that around 2023 in the first quarter, natural gas prices will be halved compared to current levels.

The EU wants to reduce energy consumption and ensure liquidity in energy markets to avoid a further economic crisis. While Russia has cut supplies, EU countries are stockpiling gas and trying to diversify supply sources as winter approaches.

Kadri Simson, the energy commissioner, points out that the EU countries’ storages are currently 82.8% full, and their further filling is a good weapon in fighting the energy war with Russia.

According to analysts, gas still accounts for about 20% of electricity generation sources in the EU.

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