Gas price in Europe above $3,200 per 1,000 cubic meters first since early March
It is reported that there is no reasonable limit for spot prices on the market now
MOSCOW, August 25. /TASS/. The price of gas in Europe surpassed $3,200 per 1,000 cubic meters during Thursday trading for the first time since March 8, according to data provided by London’s ICE. The increase in the gas price since the beginning of trading is over 8%.
The price of gas futures for September delivery at the TTF hub in the Netherlands rose to $3,238.5 per 1,000 cubic meters, or 312.61 euro per MWh (on the basis of the current euro exchange rate against the dollar, prices at ICE are in euro per MWh).
The growth is due to an increase in the price of Asian futures contracts on supply of liquified natural gas over fierce market competition among developed countries, including Japan and South Korea that are boosting reserves before the winter. Moreover, prices are surging as Nord Stream is expected to be completely stopped from August 31 to September 2 due to the repair of the only gas compressor unit remaining in operation.
On March 7, 2022, the stock exchange price of gas hit almost $3,900 per 1,000 cubic meters for the first time ever. Gazprom did not rule out gas prices in Europe would climb above $4,000 per 1,000 cubic meters in winter.
Experts interviewed by TASS believe gas prices could rise to a record-breaking $5,000 per 1,000 cubic meters in winter in the event of cold weather and a reduction in stocks in storage facilities. In their opinion, there is no reasonable limit for spot prices on the market now.
The Nord Stream gas pipeline, which supplies gas from Russia to Europe, has been used at about 20% of its maximum capacity since July 27 due to the shutdown of two gas turbines. One of them, built in Canada by Siemens Energy, was sent to Montreal for repairs. Due to Ottawa’s sanctions against Russia, the manufacturer initially refused to return the repaired turbine to Germany, but after numerous requests from Berlin, the company decided to do it. On July 25, Gazprom announced the forced shutdown of another gas turbine engine at the Portovaya compressor station. Consequently, only one turbine remains in working condition now.