5 Sep 2019 14:10

Gas price increase in Europe this winter to be small, UGS facilities filled - Mikhelson

VLADIVOSTOK. Sept 5 (Interfax) - The increase in gas prices in Europe this winter will be small, and underground gas storage (UGS) facilities have been filled, Novatek head Leonid Mikhelson told journalists at the Eastern Economic Forum.

"In connection with the fact that European UGS facilities are overfull, I think there'll be an increase in prices, but not a significant one," Mikhelson said, commenting on the pricing situation in light of fears that deliveries of Russian gas through Ukraine will cease.

He declined to predict when LNG prices in Asia will become more attractive than those in Europe. "Who can answer [such] questions? What will the average price of oil be next year? The variation in forecasts is from $40 to $75 per barrel. In our budgets, we try to factor in the most pessimistic possibilities to ensure stable work," Mikhelson said, adding that Arctic LNG 2 is "ready for low prices."