Gas price around 25 euros/Mwh could boost investment, Uniper executive says
AMSTERDAM, May 14 (Reuters) - Gas prices around 25 euros ($28.13) per megawatt-hour, compared to 34 euros currently, could be needed to stimulate investment in the European economy going forward, a senior executive at Germany's utility Uniper (UN0k.DE), opens new tab said on Wednesday.
Since the energy crisis of 2022, when gas prices peaked at nearly 350 euros per megawatt hour (MWh), dozens of firms across Europe have closed factories and cut activity and jobs as high gas prices undermined their competitiveness.
"I'm optimistic that gas prices around 25 (euros/MWH) might stimulate some investment in the European economy going forward, if you can prove that this is a price level that can be stable," Carsten Poppinga, Uniper's chief commercial officer said at the Flame gas conference in Amsterdam.
Many businesses have maintained their reduced demand and lower manufacturing activity, with negative implications for Europe's sluggish growth.
Poppinga said that Europe will continue to need liquefied natural gas (LNG) even if demand went down, adding that while trying to diversify, the continent is expected to get a large portion of its supplies from the United states.
"U.S. LNG remains the most economic way to bring gas into the European Union," he said.
($1 = 0.8889 euros)
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