Higher energy prices due to Nord stream gas reductions.
Analysts have estimated extra steep inflations in energy costs as a conclusion of Russia’s move to cut streams through the Nord Stream pipeline.
That’s one of the discoveries of a new article by Wood Mackenzie which indicates high costs resulting from the restrictions will inevitably lead to a reduction of Asian gas demand, freeing up some LNG for Europe.
The analysis also stresses that Russia’s supply reduction via Nord Stream poses risks to gas storage refill in Europe.
The authors of the report estimated that if Nord Stream continues flows at 45% capacity or if it stops altogether, Europe will only have the ability to refill storage partially to 69% and 60% subsequently.
This is lower than the 5 year range for European gas storage, Wood Mackenzie has stated.
Kateryna Filippenko, a Principal Analyst, Global Gas Research for Wood Mackenzie, stated: “If Gazprom continues restricting flows, in both cases storage will runout throughout winter unless other demand or supply measures are taken, or Gazprom sends additional gas via available booked capacity via Ukraine, although we believe this is very unlikely.”
Higher energy prices due to Nord stream gas reductions.
