Uniper CEO predicts high gas prices as long as Strait of Hormuz shut
RoydadNaft – Uniper expects gas prices to remain at around €50 to €60 per megawatt hour as long as the Strait of Hormuz is closed to shipping, the CEO of Germany’s biggest gas importer said.
Prices would need to fall to ensure German gas storage facilities hit 70% target levels by November, Michael Lewis told journalists after presenting Uniper’s first-half results.
German gas caverns were 48% full as of August 9, down from 64% a year ago and below the 59% European Union average, raising fears that levels might not be high enough for a harsh winter.
“These high prices are bad for our customers, bad for the industry and bad for our wealth. That is why we need a solution,” Lewis said on Tuesday, highlighting the challenges facing the world’s third-largest economy and Europe as a whole.
The Iran war caused gas prices to spike, meaning the fuel is sold rather than stored. Gas caverns are usually filled during the summer when prices are normally lower, but the conflict between the United States and Iran has reversed this trend.
($1 = 0.8669 euros)
