Gas prices in Europe have grown to their maximum since 1996

Prices on natural gas in Europe hit all-time high

Prices on natural gas in Europe have reached historic highs. The cost of fuel has risen to a record high since 1996 — for the entire period of operation of gas hubs in Europe, the data from London Stock Exchange shows.

Thus, the estimated gas price amounted to $2,861.6 per thousand cubic meters.

During the session on August 22, September futures for the Dutch TTF hub cost 291.8 euros per kilowatt-hour, or $3,086.62 per thousand cubic meters. Thus, the price has grown by 19.3 percent in one day.

Stock exchange prices on natural gas in the EU may reach $4,000 per thousand cubic meters, director of external relations at BitRiver Andrey Loboda said. According to him, such a price may make headlines indeed as gas supplies from Russia to Europe have been decreasing and demand for fuel has been growing. The heating season is approaching, but underground gas storage facilities in Europe are far from being full. One may expect prices to hit the level of $4,000 already in the first half of September.

Gazprom also predicted a price of up to $4,000. The production of natural gas, as well as exports to non-CIS countries, has been declining.

Natural gas prices have been growing against the backdrop of Gazprom's decision to cut gas transportation via the main export route — the Nord Stream gas pipeline. The Russian company first referred to difficulties in obtaining a gas turbine from repairs. Afterwards, Gazprom said that it could not accept the turbine from Canada.

On August 19, Gazprom suspended supplies due to the need to conduct maintenance works of the only turbine of the gas pipeline. Igor Yushkov, a leading analyst at the National Energy Security Fund, noted that the Nord Stream pipeline could be completely shut down after maintenance if critical damage was going to be found during the works.

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Author`s name Editorial Team
Editor Dmitry Sudakov