Russia, Europe's largest gas supplier, will see its exporting prices increasing by 0.1 crowns per standard cubic metres (sm3) to average 1.8 crowns (22.43 US cents) this year, because of a more extended cold weather across Europe.
According to Reuters, high coal prices, decreased gas storage capacity in Europe and low access to hydro and nuclear power were also increasing prices up. However, in 2019, Europe will receive more LNG, competing with Norway’s piped gas.
With the increase in LNG access, the gas prices will fall under 1.5 Norwegian crowns per sm3, the government said. Over the course of the years, export prices will increase to 1.9 crowns/sm3.
After reporting a reduction for four years in a row from 2013 to 2016, Norway’s gas export price recovered to an average 1.7 crowns/sm3 last year.