Gas price reaches $727 per thousand cubic meters in Europe

The price of TTF October futures on the ICE Futures exchange on Monday morning reached €59.585 per MWh, or $727 per thousand cubic meters, according to the exchange data, Interfax reports.

In August, the average value of a day-ahead contract on TTF was $533, in early September – $658 per thousand cubic meters. Since the beginning of the year, the average price of a day-ahead contract on TTF was $344 per thousand cubic meters.

The main price driver is the low level of gas stocks in underground storage facilities in Europe with the limited gas flow through pipelines and in liquefied form.

A little more than a month remains before the transition from pumping to withdrawing gas from underground storage facilities, and the level of stocks barely exceeds 70%. On Sunday morning, stocks amounted to 70.45%, 15.7 percentage points below the five-year average.

Since the end of August, Gazprom has stopped pumping gas into the German underground storage facilities Rehden and Katharina. It continues limited injection to the Austrian Haidach, the German Jemgum and Bergermeer in the Netherlands.

Moscow and Minsk will sign a document on a single gas market by December 2023.

Earlier, Gazprom reported that the construction of Nord Stream 2 was completed.

Tags: Gazprom, UGSF, gas production, RF, heating season, Gas market, price, gas supplies, volumes, natural gas, thermal energy, Europe

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