Gas prices are growing in Europe, reaching their maximum point in the United Kingdom for two months in the light of continuing problems with Russian gas supplies via Ukraine to European consumers, according to the Bloomberg news agency.
Liquefied natural gas supplies were insufficient to meet demand in Europe when Russia halted gas shipments via Ukraine, LNG Intelligence said, citing Jean-Marc Hosanski, a senior vice president at Total SA’s liquefied natural gas (LNG) business.
Gas prices in the U.K., Europe’s largest market, climbed as much as 8.1% to 67 pence per therm, according to broker Spectron Group Ltd. That is equal to $9.79 a million British thermal units. A therm is 100,000 Btus. The ruble fell as low as 32.4112 per dollar.
Russia delivers about 120 billion cubic meters of gas a year to Europe through Ukraine, which is equivalent to about 120 LNG cargoes a month, the trade daily said. Europe imported 53 billion cubic meters of LNG in 2007, equivalent to about 23% of the LNG traded globally that year.
Europe may have to import four cargoes every day to compensate for the decline in Russian supplies, the report said. About 10 cargoes to 15 cargoes a month, or about 10% of the Russian supply gap, may be sourced from the spot market by diverting shipments earmarked for the United States, the report said.
