Gazprom boss Alexey Miller says that gas prices for Europe could triple by next year to $1500 per thousand cubic meter, while speaking to journalists at a meeting in Deaville, France today Tuesday, June 10.
Already struggling with rapidly rising oil costs, Europe could now face crippling rises in the price of gas as early as next year. Gazprom's Miller said that natural gas prices in Europe could rise to as much as $1,500 per 1,000 cubic metres (cm) by 2009 on the back of strong international oil prices. Miller added that prices for its exports to Europe had already increased to $410 per 1,000 cm this year, compared with the company's earlier expectations of $400 per 1,000 cm.
Speaking to journalists in the Norman resort of Deauville, Miller said he expects oil prices to reach $250 per barrel next year. The head of Gazprom's export arm Gazexport, Alexander Medvedev, suggested that with gas prices in Europe linked to the oil prices, that would yield a gas price of $42 per million British thermal units, or $1,500 per 1,000 cm.
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