The warm climate and large gas reserves in EU storage facilities, coupled with high imports of LNG, have brought down gas prices in the European Union. They dropped to $ 1,000 per thousand cubic meters. True, we are talking about spot deliveries in the near future. Winter supplies are still significantly more expensive.
According to the EEX platform, the cost of spot gas supplies to Europe has dropped to $ 1,000 per thousand cubic meters. This is the lowest figure since June, when Nord Stream started cutting supplies due to the turbine situation.
“Heat, the storage facilities are full, the production facilities are down, no one turns on the heating yet. RES reserves coal for joy Grete Thunberg“, – took note of the Deputy Director of the National Fund for Energy Security (FNEB) Alessio Grivach.
At the same time, future gas supplies to European exchanges remain expensive. Hence, according to the London ICE exchange, deliveries from the TTF hub in December-April are above the level of $ 1,800 per thousand cubic meters.
This situation is explained by the fact that, despite the UGS facilities being 91% full, alternative suppliers cannot fully compensate for the reduction in Gazprom’s supplies due to sanctions and counter-sanctions. As a result, the European Commission convinced EU countries to voluntarily reduce consumption by 15%. The German regulator calls for a 20% reduction in demand in the country. And even in this situation, the Federal Grid Agency has not ruled out a gas shortage from mid-December. During the heating season, the shortage could amount to over 10 billion cubic meters, the regulator believes.
