Benchmark natural gas prices in Europe and Asia rose to near-record levels as the worst energy crisis in decades intensified competition for supplies, DPA and Bloomberg reported, citing Agerpres.
On Thursday morning at the TTF center in Amsterdam, where Europe’s benchmark natural gas prices are set, quotes rose more than 6% to nearly 316 euros per megawatt-hour (MWh), after posting an increase on Wednesday by 13%. .
In the spring, at the TTF hub in Amsterdam, quotes reached a record level of almost 335 euros for one megawatt-hour (MWh).
Asian liquefied natural gas (LNG) futures rose 18%, near a record high.
The market has further soured in recent weeks as extremely hot and dry weather has disrupted fuel transportation by rivers and limited hydro and nuclear power generation. As a result, demand for gas is increasing at a time when supplies from Russia are decreasing.
In Europe, gas prices are more than ten times higher than average for this time of year, destabilizing the economy, undermining the euro and increasing pressure on politicians to mitigate the impact of high inflation. Supply disruptions have intensified this week, intensifying competition with Asia for supplies.
The supply of Russian gas remains at a low level, and in September, due to repair works, a decrease in receipts from Norway is expected.
“Europe simply does not have access to alternative supplies to compensate for the reduction in Russian gas supplies. LNG has helped fill Europe’s gas reserves,” said Samantha Dart, director of Goldman Sachs Group Inc.
Source: Hot News RO
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