A colder winter could drain gas deposits and cause higher demand for natural gas in the summer, so gas prices next year could be relatively high, Engie Romania CEO Eric Stab said on Tuesday at the Romanian International Gas Conference 2021, an event organized by the Federation of Petroleum and Gas Employers (FPPG), with the support of the Energy Policy Group.

“I don’t know what will happen to prices. Unfortunately, I’m afraid no one knows what will happen. No one expected this dramatic rise in wholesale prices over the last six months. Every day we are all surprised by fact that prices are rising, although they are at a record high. Honestly, I don’t know what’s going to happen. It’s very important what kind of winter we have. If we have a very cold winter, there will be more pressure on wholesale prices, which will have an effect later and after the next period (after winter), because the deposits will be emptied during the winter and will have to be refilled, which will generate a higher demand in the summer months. We may be facing relatively high prices (next year). No one knows what will happen next, it is important to make sure that there are new gas sources entering the market, because we have an imbalance between supply and demand,” said Eric Stab, according to Agerpres.

The general manager of Engie Romania emphasized that the company has no choice but to transfer to consumers the high prices at which they buy natural gas on the wholesale market.

“Regarding the intervention of the authorities on the market, through emergency ordinances and then through a new law: to be honest, there was a need to do something, because prices had reached a level that was clearly no longer sustainable. I think it was understandable that the Romanian authorities decided to intervene. What we would have liked or welcomed would have been to have more interaction and more consultation with stakeholders, including suppliers, and I would say even more openness to our proposals, because the situation is very difficult for suppliers. We are very eager to make sure that the gas remains accessible to our customers, after all, we buy it on the wholesale market at very high prices and unfortunately we do not have other option than to pass on these high costs further, so it’s in our best interest to find solutions. The legislation that has been passed is complex,” said Eric Stab.