European gas prices could more than double as depleted reserves threaten winter supplies, Gazprom CEO Aleksey Miller has warned.
Wholesale prices have already reached their highest level in nearly four years, briefly exceeding €97 ($108) per megawatt-hour on Monday. December gas futures climbed another 3.1% on Friday to around $1,164 per thousand cubic meters, according to London’s Intercontinental Exchange.
Miller pointed to unusually low gas reserves across the EU, noting that Germany, the bloc’s largest consumer, has filled just 61.6% of its underground storage capacity.
”Given the series of historic record lows Europeans have set in filling underground gas storage facilities [...] we can expect gas prices in Europe to peak at $2,500 per thousand cubic meters in the event of a cold winter,” he said.
Norwegian energy giant Equinor has echoed concerns over another price shock. CEO Anders Opedal said on Wednesday that European gas reserves were at their lowest seasonal level since 2011, leaving the bloc exposed to further price spikes as it competes with Asian buyers for liquefied natural gas (LNG).
The US-Israeli war on Iran has further strained supplies, disrupting shipments through the Strait of Hormuz, which previously handled around a fifth of global LNG trade. Deliveries remain roughly 80% below pre-conflict levels.
EU gas storage facilities were 74.62% full as of October 25, well below seasonal averages, with some member states already drawing on reserves as temperatures fall.
Germany has been particularly hard hit. Gas tariffs for new household customers have jumped 55% this year, according to comparison website Verivox. High energy costs have forced some European fertilizer, chemical, and steel producers to cut output, Reuters reported.
In September, EU Energy Commissioner Dan Jorgensen warned that the bloc faced its worst energy crisis since 2022, when wholesale gas prices exceeded €300 per megawatt-hour.
Despite mounting supply concerns, Brussels is pressing ahead with plans to eliminate Russian gas imports. Long-term LNG deliveries are set to be banned from January 2027, with remaining pipeline supplies scheduled to end later that year.
Moscow has repeatedly condemned the EU’s energy policy as “suicidal.” Russian presidential investment envoy Kirill Dmitriev argued last week that restoring economic cooperation with Russia “will be inevitable.”
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