The Expert Explained Why the Commissioning of Nord Stream 2 will Reduce Gas Prices
OREANDA-NEWS. The commissioning of the Nord Stream 2 gas pipeline will make it possible to reduce gas prices in a few months, Philippe Ledent, a senior economist at the Dutch bank ING, told RIA Novosti.
The expert notes that the demand for gas increases as all countries change their views on energy supply at about the same time, which leads to a slow trend of growth in gas consumption and, consequently, gas prices; gas demand also rose due to the cold spring, despite the COVID-19 crisis, which led to a decrease in inventories. This situation is destabilizing in the short term, the analyst said.
“But as other sources are realized, such as the inevitable commissioning of the Russian-German gas pipeline Nord Stream 2 and the full resumption of production units in Russia and Norway, for example, the situation on the markets will become more regular and the price of gas will decrease. a question of several months, "the analyst notes.
The current rise in prices is exceptional and is associated with the stress caused by the simultaneous economic recovery in the world, the expert notes. "The market will remain in short supply this winter and normalization is expected in early 2022," the analyst predicts.