After the increase noted at the end of May, European gas begins the month of June with a new significant increase. Due to certain unforeseen events, European gas is reaching its highest levels of the current year.
At the end of May, the price of natural gas reached 34.78 euros per MWh on the Dutch futures market (TTF). As a reminder, the latter is the indicator of gas prices in Europe. This increase in gas prices in the old continent was essentially due to imports from Austria which continues to supply itself with Russian gas; a judge could, in fact, prohibit it from importing gas from Russia.
An increase of 10% this Monday
This Monday, the European gas market has just recorded further progress. Indeed, the Dutch TTF futures contract stands at 37.825 euros per megawatt hour (MWh) this Monday, an increase of 10%. Earlier in the day, European natural gas had even jumped by almost 13% and reached its highest level of the year at 38.70 euros.
It must be said that since the beginning ofthe war in Ukraine, Europe now depends exclusively on Norway. By abandoning Russian natural gas, the old continent therefore exposes itself to unforeseen events which often cause the price of European gas to jump, and this is precisely what just happened this Monday, June 3. Indeed, due to a disturbance which paralyzed the Norwegian gas site of Nyhamna, the transport of gas to the British terminal of Easington was stopped. For the moment, the cause of this interruption remains unknown.
Gas delivery falling by 56.7 million m3 this Monday
“There are operational problems on (the) Sleipner Riser platform,” Randi Viksund, communications director for Norwegian gas pipeline operator Gassco, told AFP. “Repairs are needed there. As a result, Langeled was closed and this led to cuts in the system… There are no deliveries to Easington,” she detailed.
In total, the drop in volumes reached 29.7 million m3 on Sunday and should be around 56.7 million m3 this Monday. “We are working to put in place a plan to repair the damage on Sleipner Riser,” nevertheless wanted to reassure the communications director of the Norwegian gas pipeline operator Gassco.
With a higher European gas price, distribution prices could also increase in the coming months, which which will adversely impact the bills of Belgian consumers.
