The exchange price of gas on the ICE Futures platform jumped to almost $500 per 1 thousand cubic meters. The cost of October futures at the TTF hub in the Netherlands increased by 12.5%, reaching €44.765 per 1 MWh, or $499.7 per 1 thousand cubic meters. m, taking into account the current exchange rate on the Forex market, according to data from the ICE exchange.
From the minimum of the current year, which was recorded at auction on June 2 (€22.855 or $256.92 per thousand cubic meters), the price of gas has already jumped by 95.87%.
Gas prices rose after news of an extension of the work stoppage at a field in Norway, writes Reuters. Norwegian gas systems operator Gassco has extended the shutdown of work at the Skarv field, first until October 2, and then until October 8.
“This will lead to lower-than-expected gas supplies to Norway, which will limit the replenishment of gas storage facilities,” said LSEG analyst Marina Tsygankova. This event could potentially become a positive driver for prices, the expert said.
LSEG said that the constantly changing Norwegian maintenance schedule for fields in Norway adds uncertainty to the market, and falling LNG supply volumes also contribute to the rise in prices. At the same time, the forecast of higher temperatures for early October should put pressure on prices, experts at Engie’s EnergyScan believe.
In addition, the market could be influenced by the news that the Dutch government on Friday, September 22, confirmed plans stop production next month at Europe’s largest gas field, Groningen. The authorities consider its further exploitation dangerous. Mining will be stopped from October 1, the government announced.
The Groningen gas field was discovered in 1959, and gas supplies to Europe began in 1963. In the area of the Groningen field, a large number of tremors are recorded annually. In 2018, the Dutch government decided to gradually reduce production volumes and subsequently close the field due to constant earthquakes associated with the mining process.
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2023-09-25 12:23:04
