Economy•22 Sep ’23 3:09 PM Author: BNR Web Editorial Staff
Since the gas price reached a trough at the beginning of this month at 31 euros per megawatt hour, the price has already risen more than 30 percent. Today the price of gas peaks at more than 41.2 euros. The price has risen so rapidly due to uncertainty about gas supplies and alternatives to gas.
Less natural gas comes from Norway because production plants have reduced production capacity due to maintenance. This remains a problem in October. In the United States there is uncertainty surrounding the production of liquefied natural gas, traders see. This means that less natural gas is being supplied to one of the most important natural gas producers in the US.
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With the approaching winter, the gas market is particularly sensitive in Europe. In many EU countries, reserves are almost completely full. But unexpected setbacks, such as reduced gas production, cause volatile prices on the gas market. In addition, a ban on diesel and gasoline exports from Russia may be extended, further complicating the situation for the EU. However, the question is also whether the reserves in the EU provide enough support to get through the entire winter. That mainly depends on how cold it will be in the region this winter and whether there is enough supply of gas and alternative heating sources.
Groningen closed
The current gigantic jump in the gas price may also have to do with the decision of the outgoing cabinet in the Netherlands to stop gas production in Groningen as of October 1 of this year.
Since the gas price reached a trough at the beginning of this month at 31 euros per megawatt hour, the price has already risen more than 30 percent. Today the price of gas peaks at more than 41.2 euros. The price has risen so fast mainly due to uncertainty about gas deliveries and alternatives to gas. (Myko M)
2023-09-22 13:09:00
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