European gas prices surge 20% as Russia’s latest move causes supply fears: Report

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In the aftermath of Russia’s move to shut a major pipeline, prices of European gas surged 20 per cent, Bloomberg reported. It caused fears that the move will lead to a prolonged supply halt. 

The report mentioned that benchmark futures rose toward 300 euros a megawatt hour. The electricity and coal prices also surge to fresh records. 

The recent developments show that the Europeans are preparing for a difficult winter without gas supplies from Russia. It is part of the fallout from the war in Ukraine, which started after Russia announced the invasion of its neighbouring country on February 24. 

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In the report, it is mentioned that the key Nord Stream pipeline will stop for three days of maintenance on August 31. This has raised concerns that the link won’t return to service as planned after the works. 

This comes after Bulgaria announced that it will seek talks with Russian energy giant Gazprom to resume deliveries of natural gas ahead of the winter season. 

The deliveries were cut by Gazprom to Bulgaria in late April after the EU member’s previous centrist government refused to pay in rubles. 

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Ever since the supplies were cut, the nation, which is almost totally dependent on Russia for its annual consumption of 3.0 billion cubic metres of natural gas, had been looking for alternative deliveries. 

Meanwhile, German Chancellor Olaf Scholz met Canadian Prime Minister Justin Trudeau on Monday (August 22) at the start of a two-day trip. During this crucial trip, the two leaders are expected to discuss energy cooperation. 

Notable, Ukraine is at odds with Germany over its gas imports policy. 

Especially regarding the deal with Moscow to build the Nord Stream 2 pipeline and also the deal with Canada to get a repaired turbine for the Nord Stream 1 delivered back to Germany. 

(With inputs from agencies) 

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