The price of gas will remain “above average” for years to come, according to energy expert Ronald de Zoete. ‘Until 2027 we have to buy a lot of extra natural gas on the spot market to replace Russian gas. It will therefore remain above average in the coming years,’ says De Zoete.
De Zoete’s statements are in line with those of others. For example, German Economy and Climate Minister Robert Habeck said it could take up to a year for the gas price to return to its old level. Next, Germany hopes to reduce high energy prices through alternative energy sources, such as liquefied gas (LNG) from the United States and Qatar.
Colder winters, higher prices
Next year, the price of gas could also be higher, because then the energy storage will be much more empty than now and will have to be replenished. “We managed to fill gas storage facilities with Russian gas last winter, but that will no longer be possible next year. Then it has to come from somewhere, but it’s not easy,’ says Cora van Nieuwenhuizen, president of Energie Nederland.
The level of energy prices does not depend only on geopolitical circumstances, De Zoete points out. “If we get cold winters in the next few years, we could see a repeat of moves. Because for the moment there will be no more natural gas on the market». The energy expert also sees that we have been quite “lucky” with energy prices this winter, as China needed little more LNG. ‘They were able to resell everything in Europe at a big profit, so they had enough volume. The demand from the Far East and the climate will determine the price.’
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
