European Gas Price Shoots Up 24 Percent

0 16,557

The European gas price rose by 24 percent on Thursday, as less and less natural gas flows from Russia to the European continent.

 

Gazprom this week cut deliveries through the Nord Stream pipeline and both Eni, Engie and Uniper say they are receiving less natural gas.

The price increase comes on top of the 46 percent increase from earlier this week. The leading Dutch TTF future cost $ 148.99 per megawatt-hour on Thursday, the highest level since early March.

According to Gazprom, the restrictions via Nord Stream are due to technical issues, but Germany believes there are political motives behind it. Since the Russian invasion of Ukraine and subsequent sanctions against Russia, the Kremlin has threatened to turn off the gas.

Due to the high temperatures in large parts of Europe, private individuals currently hardly need gas to heat themselves. However, certain industrial sectors, such as the chemical industry or steel, remain vulnerable to rising gas prices. For the time being, there are no problems for the German industry, although the regulator does call for sparing.

In addition to the tensions with Gazprom, there is also a breakdown at a supplier of LNG (liquefied natural gas, ed.) in Texas as a result of a fire. The supply problems would last longer than expected, it said Thursday.

Leave A Reply