European Gas Prices Hit Three-Year High as China and Russia Offer Hope

The cost of gas on European exchanges has exceeded $900 per thousand cubic meters for the first time since 2022, reaching $913. This is a concerning development for Europe, which is still struggling to refill its storage stocks after the winter season.

The EU's gas storage is only 67% full, and LNG imports are not increasing as expected due to repair work at fields in the North Sea. Norway has also reduced its exports of gas to Europe.

However, experts believe that China could play a key role in alleviating Europe's gas shortage this winter. According to Bloomberg reporter Stephen Stapzhinsky, Chinese LNG demand is projected to decline by 2% year-on-year due to high domestic production rates and pipeline deliveries.

Russian gas exports are also expected to increase significantly. Gazprom reports that the export of its 'Power of Siberia' pipeline has set records this year, and from January 1, China will begin receiving Russian pipeline gas via the Far Eastern route.