Gas prices in Europe soar due to energy crisis alert
Gas prices in Europe soared after warnings that Russian gas supplies to the continent will continue to dwindle and that the energy crisis is not over yet.
At TTF, the Netherlands-based virtual natural gas trading point with the deepest depth in Europe, the price of gas per megawatt-hour rose 23.7 percent over the day, reaching 38.4 euros. for September futures contracts.
For the October futures contracts, the price of gas per megawatt hour rose to 41.5 euros.
The TTF price of 38.4 euros means that the price of a thousand cubic meters of gas is 408.5 euros (448.5 dollars).
After this increase, prices registered the highest level of the last 5 weeks.
Prices, which on June 30 were 38.4 euros, fell to 35.2 euros on July 3 and have followed an almost flat path since that date.
For natural gas imports from Turkey, the TTF price is largely taken into account in the price calculation.
‘THE SHARE OF RUSSIAN GAS WILL CONTINUE DECREASING’
Prices, the Chief Executive Officer (CEO) of the German energy company E.ON, Leonhard Birnbaum, at the meeting held on the company’s 6-month balance sheet, showed that Europe’s natural gas imports from Russia fell rapidly, this situation The European market structurally changed and, therefore, prices in the wholesale energy markets began to rise after indicating that prices will remain high in the near future.
Stating that Russian gas will continue to dwindle in Europe’s natural gas supply, Birnbaum warned that the energy crisis is not over yet.
Recalling that more expensive liquefied natural gas (LNG) is used in Europe instead of Russian natural gas, Birnbaum said that this situation brings gas prices in Europe to the level of prices in Asia.
On the other hand, data from Gas Infrastructure Europe showed that occupancy rates for gas tanks in Europe rose to 87.7 percent as of August 6, and these rates were above plan targets for reach 90 percent occupancy on November 1.
RECORD BREAKEN PRICES LAST YEAR IN THIS PERIOD
Gas prices reached record levels in Europe due to the imbalance between supply and demand that arose after the Covid-19 epidemic and supply restrictions after the war between Russia and Ukraine.
After staying high for about a year and a half, gas prices fell to €23 per megawatt-hour on June 1, the lowest level since September 2021, as a result of declining gas demand in Europe and increased occupancy rates in warehouses.
Prices had reached their highest level in history, surpassing 300 euros per megawatt-hour in August 2022. (BRITISH AUTOMOBILE CLUB)