According to data from ICE, the gas price in Europe was nearly $1250 per 1,000 cu. m. during October 5 bids. Thus, the historical record has been set again.
The November futures price on the TTF hub in the Netherlands reached $1247.4 per 1,000 cubic meters, or 104 euros per MWh (based on the current euro/dollar exchange rate, prices on ICE are in euros per MWh).
The day before, after the gas price in Europe reached $1200 per 1,000 cu.m., it went down suddenly after the news that the Danish Energy Agency gave the green light to start testing the first string of Nord Stream 2. Less than an hour later, the November futures quotes on the Dutch TTF hub dropped almost $70 to $1124 per thousand cubic meters.
According to Alexei Miller, the Chairman of Gazprom’s Management Committee, the heavy backlog of gas pumped into Europe’s underground gas storage facilities and the increasing demand for gas have resulted in record-breaking prices for this type of fuel in European countries and may exceed them in the foreseeable future.
Since the spring of this year the cost of gas in Europe has already quadrupled. One of the main reasons is the low supply in the European underground gas storages. Another factor is the acute shortage of liquefied natural gas.
At the end of September, Europe announced that the energy crisis could last into the winter. Thierry Breton, European Commissioner for the Internal Market, noted that the increase in electricity prices in the EU countries was caused by higher gas prices as well as by difficulties in transition to “green” energy.