Engie Romania director: a cold winter will empty the gas storage, which could lead to price increases in 2022 as well

Gaze-aragaz Sursa foto: Pexels

The coming of a cold winter will empty gas storage and cause higher summer demand for natural gas, so gas prices next year could be relatively high, Engie Romania’s general manager Eric Stab told the Romanian International Gas Conference, according to Agerpres.

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“I don’t know what will happen to prices. Unfortunately, I’m afraid nobody knows what will happen. Nobody expected this dramatic increase in wholesale prices in the last 6 months. Every day we are all surprised that prices are rising, even though they are at a record high. Frankly, I don’t know what will happen. What is very important is what kind of winter we will have. If we have a very cold winter there will be more pressure on wholesale prices, which will have an effect later on and after the next period (after winter, editor’s note), because the warehouses will be emptied during the winter and will have to be refilled, which will generate more demand in the summer months. In this case, we might face relatively high prices (next year, editor’s note). Nobody knows what will happen next. It is important to make sure that there are new sources of gas coming to the market, because we have an imbalance between supply and demand at the moment,” said Eric Stab.

Engie Romania’s general manager says the company has no option but to pass on to consumers the high prices at which it buys gas on the wholesale market.

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“Regarding the intervention of the authorities in the market, through emergency ordinances and then through a new law: to be honest, there was a need to do something, because prices had reached a level that was clearly no longer sustainable (…). I think it was understandable that the Romanian authorities decided to intervene. What we would have liked or would have welcomed would have been to have more interaction and more consultation with the stakeholders, including the suppliers, and I would say more openness to our proposals, because the situation is very difficult for the suppliers. And we are very keen to make sure that gas remains affordable for our customers, after all we buy it on the wholesale market at very high prices and unfortunately we have no choice but to pass on these high costs, so it is also in our interest to find solutions. The legislation that has been adopted is complex,” said Eric Stab.