low gas prices as Russia cuts off supplies to the Netherlands and Denmark
June price chart futures on the spot TTF gas index on the ICE Futures exchange (in US dollars per thousand cubic meters) at intervals of 60 minutes
low gas prices rose after Russia took over deliveries to a Dutch energy company over a dispute over payments at the time the German deliveries indicated.
Gastrara, a gas trader from the Netherlands, complies with the requirements of the new “gas for rubles” payment scheme. Termination of supplies from Gazprom from May 31. The Danish energy company Orsted is also definitively refusing to pay for Russian gas. Tuesday is the payment deadline for Orsted. The company announced that the fees come in euros, which also applies to the stop of the offer. Both companies are looking for alternatives.
A dispute over payments while maintaining the power of Europe’s connection to Russia as the continent rushes to diversify its supplies after the invasion of Ukraine. Against the backdrop of decisions directed against Moscow, Russia has introduced new conditions that include the allocation of funds in rubles in Gazprombank.
“The Netherlands should be able to make up for these lost flows, the significant volume of LNG imports that we have seen this year,” Bloomberg writes, citing analysts at ING Groep NV. “In addition, we are also seeing a gas leak from the UK through the BBL pipeline.”
Some of the largest European gas buyers believe that raising funds for supplies to Russia does not fall under the decision of the European Union. But companies like GasTerra and Poland’s PGNiG, contracts that expired in the coming months, have waived Moscow’s decree.
Poland, Bulgaria and Finland have already registered their shipments due to the dispute over the incident. According to ING, including the Netherlands, these countries import about 13% of the total gas supply to the EU.
Separately, deliveries to Germany via the Nord Stream pipeline – Russia’s main gas pipeline on the continent – are expected to fall by about 11% on Tuesday from orders.
In Brussels, EU leaders agreed to impose a partial ban on oil supplies to Russia, setting the stage for a sixth package of restrictions aimed at restricting Russia. The sanctions prohibit the purchase of crude oil and oil products from Russia delivered by sea, but have a temporary exemption for pipeline oil.
The near contract for the supply of European gas for the first month, which was extended until July on Tuesday, rose by 6.6% to 93.83 euros per MWh.
According to Bloomberg
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