Gas price in Europe reached a new record in 3 months - $272/thous. cub. m

The spot price for gas in Europe has changed the value of a three-month high amid harsh weather forecasts and the denial of expectations of a possible increase in the transit of Russian gas through Ukraine in May, Interfax-Ukraine reports.

The price of gas for Wednesday delivery at the Dutch hub TTF increased to $272 per thousand cubic meters, which is the highest value since January 24.

Since the beginning of the year, the average price of a day-ahead contract for TTF was $236 per thousand cubic meters. Gazprom's budget for 2021 includes the average price for gas exports to non-CIS countries at $170 per thousand cubic meters. More than 60% of Gazprom's sales to Europe are now carried out at spot prices "one month in advance", the rest are pegged to oil prices, longer futures, spot gas prices and a hybrid mechanism.

Europe is experiencing a significant shortage of gas for injection into UGS facilities, and the TTF price curve shows the impact of speculation about the prospects for Russian gas supplies through Ukraine on European prices. On Friday, the Ukrainian GTS Operator unexpectedly announced an auction for additional gas pumping to Europe for May in a volume half of the current supply: 64 million cubic meters per day above the current pumping rate of 124 million cubic meters. On the same day, the price of gas fell by $22. On Tuesday, at the end of the auction that was ignored by Gazprom and failed, the price bounced back to its previous heights and continued to rise.

Gas pumping into European UGS facilities with the beginning of a new working week (the latest data from the Gas Infrastructure Europe portal is based on the results of the gas day on April 26), although continued, but significantly reduced in volume. Europe is already a month late with the start of the campaign to restore stocks in storage facilities and without forced imports in all directions of supplies –pipes and LNG. Europe cannot properly prepare for the new winter.

To recap, Kobolyev said why Naftogaz did not set an annual gas price of UAH 6.99/m3.

As reported, Akademik Chersky started laying the Nord Stream 2.

Tags: Gazprom, gas, contracts, tariffs, UGSF, gas production, heating season, price, gas supplies, natural gas, consumers, Europe

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