Gas giant Gazprom says it is entirely possible European gas prices could hit $4,000 per 1,000 cubic meters in the coming winter, just as spot prices hit $2,450 on the London ICE exchange.

Gazprom said in a statement, “We would like to note, that on spot exchanges in Europe, gas prices have surpassed the figure of $2,500. According to conservative estimates, if the trend continues, prices will exceed $4,000 per 1,000 cubic meters in winter.”

Spot gas prices in Europe hit $2,450 per 1,000 cubic meters, due largely to spot prices rising in Asia, numerous gas production and transportation facilities in Norway being taken offline and closed for planned maintenance which will continue through the end of August, and Europe seeing temperatures soar and wind electrical generation fail, due to a lack of wind.

The price would not be without precedent, and a recent precedent at that. On March 7th, 2022, the European exchange rate for gas hit $3,900 per 1,000 cubic meters for the first time ever.

Gazprom maintains that shipments of gas to nations outside the Commonwealth of Independent States fell by 36.2% to 78.5 billion cubic meters over the first seven and a half months of 2022.

On July 27th, Kremlin press secretary Dmitry Peskov said that while EU sanctions affected Gazprom’s ability to deliver flows, it was not correct to imply there was a link between the lifting of EU sanctions against Moscow, and the level of Russian gas supplies to Europe.

Since July 27th, due to issues with gas turbine maintenance and deliveries, Russia has only been able to supply gas through the Nord Stream Pipeline at 20% of normal flow capacity.

Europe is rushing to make up the deficit with LNG deliveries, as it tries to fill necessary storage reserves ahead of the winter season, when gas consumption peaks, and the reserves will be drawn down to zero filling the rising demand.