ALGIERS- Gas prices in Europe are set to remain at record levels until at least next spring, which will enable the national hydrocarbon company “Sonatrach”, to garner additional income.
In this context, Bank of America expected gas prices to remain high in Europe by about 30 percent in September, and 7 percent in October, while Spanish experts, according to local media, saw that the upward trend in prices would continue until next spring at least.
These developments indicate that the national hydrocarbon company Sonatrach, which markets most of its gas production to the European continent, will reap additional record revenues at least until next spring, incomes that will somewhat compensate for the losses incurred by the company during the year 2020 when sales decreased and with them prices due to the economic logjam in Europe due to the Corona pandemic.
In this context, the Algerian oil and gas analyst and expert at the Stockholm Stock Exchange, Noureddine Ghelil, believes that gas prices will remain high on the European continent for two main reasons.
The first reason, according to Noureddine Ghelil, is that the price hike of this substance was outside the cold season and the winter season, because it was customary for prices to rise periodically, seasonally, when the winter season came, but this time, prices according to him, rose in the height of the summer, and therefore it is very unlikely that they slump in the winter.
The second reason, according to him, is that there is a demand that is much higher than supply, with regard to gas in Europe and several regions of the world, and therefore prices have reached record levels, and it is expected that they will continue in this trend for several months, most likely, until next March.
Economic Expert, Noureddine Ghelil, also stressed that Sonatrach has a historic opportunity to secure record revenues in view of the very high levels of gas, whether for natural gas or liquefied gas “LNG”, explaining that Sonatrach must pump gas at its maximum capacity towards Europe in this circumstance given the very enticing prices.
Echorouk
