OUR Russia forecasts that the average price of its natural gas exports will more than double this year, reaching $730 per 1000 cubic metersand then gradually decline until the end of 2025 as pipeline gas exports decline, as forecast Ministry of Economic Development seen by Reuters.

Gas flows from Russia, Europe’s biggest supplier, have declined this year after the pipeline route was closed when Moscow sent troops to Ukraine in February, some European countries were cut off from Russian gas supplies due to refusal to pay for gas in rublesat the same time, a dispute broke out over the repair of one of its turbines the Nord Stream 1 gas pipeline. which starts in Russia and ends in Germany.

This was the result gas prices will skyrocket.

The Ministry of Economic Development of Russia predicts that gas exports through pipelines from Gazprom this year will be reduced to 170.4 billion cubic meters (billion cubic meters) compared to its forecast published in May, which called for the export of 185 billion cubic meters against 205.6 billion cubic meters in 2021.

It also forecasts that natural gas volumes will continue to decline after the end of this year, without further explanation.

As a result of already limited supplies, the average gas price at which Gazprom will sell gas is projected to reach $730 per 1000 cubic meters (cm) more than twice as expensive in 2022 304.6 USD per 1000 cm which was last year and represents an increase 40% compared to the previous forecast of $523.3 per 1,000 cubic meters.

Russia began to gradually increase production oil Following the imposition of sanctions, as Asian buyers increased their purchases, Moscow raised its forecasts for production and exports until the end of 2025, the ministry document said.

Gazprom also reported that natural gas deliveries to China are growing, but detailed data are not provided, and Europe remains by far the largest market for Russian gas.