Gas price in Europe exceeded $900/thous. cub. m

The spot price of gas in Europe continues to rise, Interfax-Azerbaijan reports. The level of gas reserves in European storage facilities is at a historic low, the Nord Stream 2 gas pipeline is awaiting approval for launch in the Federal Republic of Germany and the EU, while LNG flows have bypassed the region until recently.

The price of the nearest (October) futures on the TTF spot gas index on the ICE Futures exchange on Wednesday afternoon reached €75.565 per MWh, or $923 per thousand cubic meters, according to the exchange data.

The historical perspective of comparing current price peaks rests on the soaring of quotations in March 2018 to a thousand dollars per thousand cubic meters, when the legendary cold front "the Beast from the East" raged in Europe. The historical record for the price of a day-ahead contract on TTF was recorded on March 1, 2018 - €76 per MWh, or $ 969 per thousand cubic meters.

In August 2021, the average value of a day-ahead contract on TTF was $533, since the beginning of September – $683 per thousand cubic meters. Since the beginning of the year, the average price of a day-ahead contract on TTF was $348 per thousand cubic meters.

The main factor behind the rise in prices is the low level of gas reserves in underground storage facilities in Europe with its limited supply through pipelines and in liquefied form. A little more than a month remains before the transition from injection to withdrawal from underground storage facilities, and the level of reserves barely exceeded 70%. On Tuesday morning, reserves stood at 70.92%, 15.65 percentage points below the five-year average.

Gazprom currently does not pump gas into the German underground storage facilities Rehden, Katharina, and Jemgum. On Monday, the concern began sampling from the Bergermeer storage facility in the Netherlands.

As a reminder, the Russian Foreign Ministry announced the time frame for obtaining permission to launch Nord Stream 2.

Earlier, Poland said it intended to abandon Russian gas until 2023.

Tags: Gazprom, Nord Stream 2, UGSF, GTS, RF, heating season, Gas market, stocks, pipeline, Germany, gas supplies, Europe

Read also

China looks to lock in U.S. LNG as energy crunch raises concerns
EU leaders to press ahead with emergency relief for energy prices
Ukraine and the EU will develop different scenarios on gas supplies to Ukraine