Novak: Gas prices in 2022 may remain at high level

Global natural gas prices in 2022 may remain at high levels, Russian Deputy Prime Minister Alexander Novak said in an interview with the Rossiya 24 channel, Report informs.

“The balance of supply and demand is such that the price [for gas] is quite high. I think that next year it will be at high levels,” he said.

He noted that Russia has always been in favor of long-term gas contracts: “When imports in Europe are about 250-300 billion cubic meters of gas, you need to understand where it will come from and rely, in my opinion, primarily on a long-term contract.”

The global gas market this year faced a supply crunch amid a sharp recovery in Asian demand and a shortage of LNG capacity. The increased demand for gas in Asia caused a rise in prices and attracted main supplies of LNG, which contributed to the intensification of the crisis in Europe. The situation was aggravated by low stocks in gas storage facilities. Against this background, the gas price at the Dutch TTF hub this fall for the first time in history exceeded $1,000 per 1,000 cubic meters, and in December - $2,000.