Russia collapsed European gas prices Russian news EN
The restoration of the volume of Russian gas transit in Ukraine through the volume collapsed European gas prices, writes Bloomberg, citing data from network operator Eustream.
According to the publication, the value of futures fell sharply by 9.1 percent after Russian gas supplies to Slovakia through the Velké-Kapusany junction on the border with Ukraine returned to normal levels.
Other factors also have an impact on futures prices, especially warming in most of Europe and the availability of liquefied natural gas (LNG), which is conditionally considered competitive with natural gas.
The primary use is the usual selection of LNG with alternative gas suppliers, including in Qatar, the US and Azerbaijan. So far, this option has been replaced as an emergency case of escalation of sensitivity around Ukraine. Currently, about 30 percent of the EU’s gas needs are fixed by availability from Russia.
Since the end of August, an energy crisis has been observed in Europe, associated with a sharp rise in gas prices on the futures market. At peak moments, futures prices for a thousand cubic meters of gas to be delivered to the Dutch TTF hub reached 1,200. At the time of publication, the March futures cost 76.16 euros per megawatt-hour, or $904.73 per thousand cubic meters.