Gas prices to remain high until end of year

The Estonian end of the Balticconnector gas pipeline in Paldiski.
The Estonian end of the Balticconnector gas pipeline in Paldiski. Source: Siim Lõvi/ERR

Estonian experts do not expect the price of gas to fall in the coming months and see no reason for it to do so until the end of the year. Currently, there is a shortage across Europe.

The price of natural gas has risen to reach €130 per megawatt-hour, Monday's "Aktuaalne kaamera" reported. In April, it was €100 and below €90 in May. Prices have risen sharply after Russia cut deliveries to 12 EU countries.

Several countries have launched plans to reduce gas consumption.

Marko Allikson, member of the management board of Baltic Energy Partners, told AK there are concerns about ongoing maintenance work of the Nord Stream 1 pipeline, which brings gas from Russia via Germany, and whether it will continue to work afterward. If it does not then this will further reduce the supply of gas.

He said the market is "very anxious".

"[But] from the point of view of Estonian gas supply, this does not mean much," he added.

Eesti Gaas, the largest gas supplier in Estonia, is able to provide gas to its customers, said Raul Kotov, a member of the company's Board. He said prices will remain between €120-130 this autumn.

"Here, also, during the heating season last autumn, the price of gas was actually €130 per megawatt-hour, but the shortage of gas was certainly not as great as before the war, so it could be said that it is a bit more complicated," Kotov said, adding it is hoped the LNG storage terminal at Paldiski will be built as it provides a guarantee.

Discussions around the construction of the storage terminal are ongoing after the last tender fell through.

Priit Ploompuu, a member of the board of the Estonian Stockpile Center, said the market situation has worsened but it is hoped to increase supply soon.


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Editor: Helen Wright

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