Sunday, May 28, 2023

Gas price in Europe breaks new record high

The price of gas across Europe surged to a record high on Wednesday amid cold weather, supply concerns and increased demand.

European gas prices have soared above $1,900 per 1,000 cubic meters. It’s equivalent to $186 per megawatt-hour in household terms.

According to data from the Intercontinental Exchange (ICE), the price of November futures on the TTF hub in the Netherlands rose to $1,936 per 1,000 cubic meters, as of 8:28am GMT.

Natural gas prices retreated to $1,769 per 1,000 cubic meters by 08:47 GMT, or $170 per megawatt hour.

The price of gas on the European market has nearly tripled since the beginning of September, when October futures cost around $730 per thousand cubic meters.

Energy prices in Europe have continued to spike as the first string of the Nord Stream 2 pipeline from Russia to Europe is being filled with natural gas. According to pipeline operators, procedures are being carried out to test the pipeline’s capacity, but deliveries to the continent have not yet begun. Nord Stream 2 is still awaiting final authorization from German regulators to turn on the taps.

According to a recent report from Saxo Bank, the start of operations by Nord Stream 2 in the fourth quarter of this year could drive natural gas prices in Europe down to historic lows.

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