European Gas Prices Soar to Record High This Year Amid Fears Over Russian Supplies
Although reducing energy dependence on Russia became one of the European Union’s top priorities after the West unleashed its sanctions campaign against Moscow in 2022, the move has backfired on the continent. As Europe faced a crippling energy crisis, Russia retained its position as the world’s largest gas exporter in 2023.
Gas prices in Europe surged to this year’s highest in November, slightly hovering above $490 per 1,000 cubic meters, according to calculations based on data from London’s ICE.
Gas futures traded at $491.2 per 1,000 cubic meters in November, which is $35 (7.7%) more than the October figure of $455.9. This price is also $20 (3.9%) less than the $511.3 per 1,000 cubic meters that gas futures traded at last year.
At the close of November, European gas prices exceeded $530 per 1,000 cubic meters for the first time this year.
Prices have been nudging higher since October, with the approach of the heating season and amid uncertainty around supplies from Russia of both pipeline and liquefied natural gas (LNG). Russia suspended fuel deliveries to Austria’s OMV in mid-November, while the contract between Ukraine and Gazprom allowing gas shipments via Ukraine expires on January 1, 2025.
The West’s short-sighted sanctions that cut Europe off affordable and dependable pipeline-delivered Russian gas triggered a devastating energy crisis in 2022, with the continent now facing a possible repeat of that chilly scenario.
Russia, on the other hand, became the EU’s largest gas source in September for the first time since spring 2022. Its share reached 23.7%, Sputnik calculated based on data from the European Statistical Office. Russia also retained its global leadership in gas exports in 2023, with a net export of 139 bcm, according to the International Gas Union (IGU).