Novak pointed to insufficient filling of UGS and cancellation of the Nord Stream 2 pipeline as reasons for high prices.
Novak said, addressing the Russian State Duma:
- The gas price at some points... reached up to $4,000 per 1000 m3
- This is in fact not the limit
- The ban on commissioning Nord Stream 2 is absolutely absurd, and a misunderstanding of energy balances
The TTF month-ahead gas price hit a new record high on March 8 of Eur 212.15/MWh, according to Platts assessments by S&P Global, an increase of 1,190% year on year. It had also reached a high of Eur 345/MWh intraday on March 7.
The TTF day-ahead price rose 3.3% during the March 22 trading session to be assessed at Eur 94.625/MWh.
Novak added that Western sanctions against Russia could have an «unpredictable» impact on energy prices and that energy markets could see a «collapse» without Russian hydrocarbons.
Western countries and oil majors have moved to restrict uptake of Russian hydrocarbons in response to Russia's invasion of Ukraine Feb. 24.
Novak added that the Russian energy sector continues to operate stably despite sanctions.
A further risk to supplies from the region is damage to the Caspian Pipeline Consortium's network reported by the operator March 21.
The pipeline supplies primarily Kazakh crude, but also some Russian volumes.
Novak said that the incident could have a serious impact on global oil markets.
Risks to oil products supplies in Europe have also risen on the conflict in Ukraine.
- European diesel inventories are at their lowest level since 2008, 8% below the average for the last 5 years
- Diesel fuel shortages could be a strong destabilizing factor as demand increases due to the resumption of freight and passenger traffic after the pandemic