EU gas prices to remain high for years – Equinor CEO

Supply shortage is Brussels' biggest problem, and the bloc should be ready to pay more, according to Anders Opedal

Natural gas prices will remain high in the EU for years due to the drop in deliveries from Russia, the CEO of Norway's state energy giant Equinor said on Friday.

“The fundamental problem in Europe is a shortage of gas and there will be a shortage over time, and if Europe is to attract that gas it should expect to pay a high price in the coming years,” Anders Opedal told a news conference, according to Reuters.

He said Norway is currently providing record volumes of gas to the bloc, but warned that the latest EU proposals to cap prices for the commodity may prove to be “counterproductive” in battling the energy crisis.

“Any price cap is not really solving the fundamental problems… In fact, it can be counterproductive increasing demand while supply is not increasing,” he argued, as cited by Bloomberg.

Equinor recently overtook Russia's Gazprom as the EU’s largest gas supplier, but analysts say it does not have the production capacity to replace Russian gas flows. Still, Opedal pledged that his company’s “contribution will be to produce as much as possible.”

READ MORE: EU may pay big price for abandoning Russian energy – Sechin

Amid the rise in global energy prices, Equinor posted a record third-quarter profit on Friday, reporting that its adjusted earnings for July-September rose to a staggering $24.3 billion from $9.77 billion in Q3 2021.

Find more stories on economy and finance in TROIB business