The price of gas in Europe falls to its lowest level in 17 months

The price of natural gas in Europe fell to a 17-month low as gasoline tanks filled in many countries due to mild weather conditions and increased imports of liquefied natural gas (LNG).

The price of the March gas futures contract, traded on TTF, the Netherlands-based virtual natural gas trading point with the deepest depth in Europe, traded today at 51.55 euros per megawatt-hour.

The gas contract price fell to 48.77 per megawatt-hour during the day, its lowest level since August 2021.

The said price decreased by 4.47 percent compared to yesterday’s close at 2:30 p.m. Turkish time to 49.71 euros.

It should be noted that the price of gas fell below 50 euros after 17 months.

WEATHER CONDITIONS AND FULL WAREHOUSES ARE EFFECTIVE

Weather conditions kept natural gas consumption relatively low, so refilling of gasoline tanks and imports of more liquefied natural gas (LNG) in many countries contributed to the price decline.

In addition, the savings in natural gas, especially in the industry that produces less for cost reasons, was also effective in lowering prices.

IT WAS AT 348.8 EUROS IN AUGUST

On the other hand, the price of the futures contracts traded in TTF amounted to 348.8 euros on August 26, 2022, after a long period of 20 euros. This led to an energy crisis in Europe with its high dependence on Russian gas.

Meanwhile, imports of liquefied natural gas (LNG) from Europe increased 60 percent last year compared to the previous year.

According to Shell’s LNG Outlook 2023 report, European countries, including the UK, imported 121 million tonnes of LNG last year.

Analysts noted that in the event of a prolonged cold snap before the end of the winter season or in the event of supply outages, the price of natural gas in Europe may rise again. (AA)