The spot gas price in Europe began July with a new multi-year high. For half a month, the most important pipelines for the delivery of Russian gas, Nord Stream and Yamal-Europe, will be under repair; increasing transit through Ukraine (as shown by the booking auction on Tuesday) is not in Gazprom's plans. Gas prices continue to rise in Asia, which means that the availability of LNG for European buyers will be questionable, Interfax reports.
The price of gas for delivery on Thursday, July 1 at the TTF hub in the Netherlands rose to $431 per thousand cubic meters. Over the past month, the price of gas has added 31%, and since the beginning of the year - 80%.
Since the beginning of the year, a day-ahead contract for TTF has cost an average of $271 per thousand cubic meters. Gazprom's budget for 2021 includes an average price for gas exports to non-CIS countries at $170 per thousand cubic meters. Gazprom recently announced a new estimate for the average price of its exports to non-CIS countries in 2021 - $240 per thousand cubic meters.
Until 2019, during the repair of Nord Stream and Yamal - Europe, Gazprom increased gas pumping through Ukraine. In 2020, this did not happen for the first time - all the shortages were compensated for by the withdrawal of gas from storage facilities in Europe. In 2020, this eased the market situation a little, as Europe's UGS facilities were overflowing.
However, this year the situation is the opposite - the fullness of the EU storage facilities is at the lowest level on record. Therefore, the auction on June 29 for additional interrupted capacities for transit through Ukraine in July (64 million cubic meters per day were put up) was followed with special attention by market participants. Gazprom's refusal to book capacity at this auction has given new impetus to spot gas prices in Europe, which is driving them for the second day in a row.
As reported, Poland calls to compensate Ukraine for the security deficit due to the Nord Stream 2.
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