MOSCOW, September 2. /TASS/. The price of gas in Europe rose by 16% over the summer to about $449 per 1,000 cubic meters, according to data from the London ICE futures exchange and TASS calculations. The main factors behind the increase were the situation with gas transit through Ukraine amid an attack by the Ukrainian armed forces on Russia’s Kursk region, hot weather, and the redirection of LNG supplies to Asia.
On May 31, gas reached around $388 per 1,000 cubic meters and on August 30, they closed at $449, which is 16% higher than at the end of spring.
In May, the average price of gas in Europe was about $357 per 1,000 cubic meters, but then it gradually increased: to $384 in June (+5% year-on-year), to $366 in July (+9%), to $437 in August (+10%).
A number of factors contributed to the increase in gas prices. Hot weather, increased demand for gas-fired power generation, the diversion of LNG supplies to Asia, supply disruptions from Norway and the United States, and modest wind generation all contributed to it. In addition, the massive attack by Ukrainian forces in August on the Kursk region, where the Sudzha gas pumping station is located, further inflated gas prices in Europe.
At the same time, Europe's underground gas storage facilities (UGS) are now more than 92% full, which is only slightly less than the record level of 2023. They currently hold more than 102 bcm cubic meters of gas. However, gas reserves in European storage facilities may not be enough for the winter in case of unforeseen circumstances, including a sharp cold snap or a disruption of fuel supplies from Russia, Bloomberg noted.