Megawatt hours under 100 euros
Gas price falls to lowest level since June
10/24/2022 3:01 p.m
In August, the Russian supply freeze pushes the gas price to a record high. Since then, however, it has been on a downward trend and is now below 100 euros per megawatt hour for the first time in four months. The mild autumn is currently also contributing to this.
The price of European natural gas has fallen to its lowest level since June. The futures contract TTF on the energy exchange in the Netherlands, which is used as a reference, was at 98.60 euros at noon. It fell below 100 euros for the first time since June.
At the market, comparatively mild temperatures were referred to for the time of year. In addition, the gas storage facilities in Germany were filled faster than planned, and the level in the storage facilities is already well over 95 percent. In addition, the prospect of the start of deliveries of liquefied gas has dampened concerns about insufficient supply in the winter months, according to the market.
In addition, the countries of the EU are working on measures to limit the price of gas. Mandatory joint gas purchases and a kind of price cap for the European gas exchange TTF are part of a package of measures recently proposed by the EU Commission. European gas storage facilities are also over 93 percent full on average.
Gas price has been falling since August
The peak price for gas was reached on March 7, shortly after the start of Russia’s war of aggression against Ukraine. At that time, gas in European trading briefly cost 345 euros per megawatt hour. The European gas price has been on a downward trend since the end of August after hitting another record high of EUR 342 per megawatt hour. At that time, a stop in the supply of natural gas from Russia triggered a rapid rise in the price of natural gas.
Despite the recent relaxation, the price of European natural gas is still at a comparatively high level. In 2020, the TTF futures contract was still below the EUR 20 mark.