Ex-Naftogaz CEO warns of potential gas price hikes following Israeli strikes on Iran's gas infrastructure

Israeli drone strikes on Iran's gas infrastructure could push European gas prices higher, which in turn may lead to more expensive gas in Ukraine, according to former CEO of Naftogaz of Ukraine, Andriy Kobolev.

"Israel has begun destroying Iranian gas infrastructure with drones… For those considering gas procurement for the coming winter: this will significantly impact the natural gas balance (and therefore the price – upward) in Europe," he wrote on Facebook on Sunday.

Kobolev explained that Iran was supplying gas to Türkiye, which resold it to the EU. Now, due to the Israeli attacks, Iranian gas deliveries are under threat of being halted, and Türkiye will not be able to replace this with Russian gas, as both pipelines are already operating at near full capacity.

"As a result, Türkiye will be forced either to reduce gas exports to the EU or increase its reliance on more expensive LNG. In either case, this will push EU prices higher. And if Israel continues targeting Iran's gas sector, part of Russia's gas supplies might even be redirected to Iran," the former Naftogaz head warned, advising that stakeholders prepare for this pricing impact.

As previously reported, due to Russian attacks on domestic gas infrastructure, Ukraine has been compelled to resume large-scale gas imports from Europe.

According to Ukraine's Gas Transmission System Operator (GTSOU), Ukraine imported 501 million cubic meters of gas in May (54% via Hungary, 33% via Poland, and 12% via Slovakia), or 16.1 million cubic meters per day. Meanwhile, former GTSOU CEO Serhiy Makogon believes Ukraine needs to import about 870 million cubic meters monthly – or 29 million cubic meters daily – to meet its underground gas storage (UGS) stockpiling targets for the year.