European gas prices to increase further in event of harsh weather, Wintershall CEO says

A severe winter in Europe would likely mean natural gas prices will continue to rise higher, adding to the continent’s energy woes, according to Dea Mario Mehren, chief executive of natural gas and crude oil company Wintershall.

“Prices might go up if the winter is very tough,” Mehren said during a televised conference with investors. He stressed, however, that he was not unduly concerned about the current shortage of gas on the market.

On Tuesday, prices in Europe hit $1,090 per 1,000 cubic meters on London’s Intercontinental Exchange. Earlier this month, gas prices topped a record high of $1,900.

According to Mehren, the tension in the European gas markets would be relieved by the launching of the Nord Stream 2 pipeline from Russia. The recently-completed pipeline is awaiting EU approval before starting natural gas deliveries.

“I assume that, once Nord Stream 2 is on stream, Russia will be able to export more gas from its northern gas fields, so that will stabilize the supply situation,” he said.

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