22 Sep 2021 17:39

Nord Stream 2 partners Gazprom and Shell discuss European gas market situation

MOSCOW. Sept 22 (Interfax) - Gazprom CEO Alexei Miller and Royal Dutch Shell (SPB: RDS.A) CEO Ben van Beurden have held a working meeting via videoconference, "focusing on the situation in the European gas market," the Russian gas giant said in a statement.

The heads of the companies also discussed the Sakhalin-2 project and the companies' work to reduce the carbon footprint in the natural gas value chain, Gazprom also said.

Gazprom and Shell, along with Mitsui and Mitsubishi, are participants in the Sakhalin-2 project, Russia's first large-scale LNG plant. Shell is also part of the Nord Stream 2 gas pipeline project, which has already been built and is in the commissioning and regulatory approvals phase for launch.

Spot prices around the world are currently at record levels. This is due to a unique combination of global gas shortage factors: suspension of investment during the 2020 Covid-19 lockdown, the post-crisis global economic recovery, high gas consumption from storage facilities over the past long winter, the global course towards decarbonization of the economy and the growth of gas consumption as a more environmentally friendly fuel.

In September, European spot gas prices were very close to the level of $1,000 per 1,000 cubic meters.

The average "day-ahead" contract at the TTF hub in the Netherlands, Europe's main hub, has been $358/1,000 cubic meters since the beginning of the year.