Gas prices in Europe up by 20% amid Gazprom-Naftogaz conflict
The price of gas in Europe exceeded $2,000 per thousand cubic meters due to a new conflict between Gazprom and Naftogaz (Photo:Dado Ruvic / Reuters)
The spot price of gas in Europe on Sept. 27 went up by almost 20% and exceeded $2,000 per 1,000 cubic meters, due to increased concerns about gas transit through Ukraine.
The day-ahead contract on the TTF platform in the Netherlands closed at $2,065 per 1,000 cubic meters on Sept. 27, by almost 20% up against the previous trading day’s close.
The sharp rise in prices was not caused by news about accidents at the Nord Stream gas pipelines, but the news that Russian national gas company Gazprom had threatened Ukraine’s state-owned fossil fuel company Naftogaz with sanctions and the suspension of financial operations.
Gas prices reached $2,100 per 1,000 cubic meters early on Sept. 28.
At the same time, Gazprom’s request for transit through the Ukrainian gas transmission system on Sept. 28 amounted to 42.4 million cubic meters, as in previous days and months.
Meanwhile, Europe continues pumping gas into underground storage facilities, in preparations for what’s expected to be a difficult winter. On average, gas reserves increased to 87.97%, the Interfax-Ukraine news agency has reported, with reference to data from the Gas Infrastructure Europe association.
Currently, 80% of underground storage facilities in Belgium, the Czech Republic, Croatia, Denmark, France, Germany, Italy, the Netherlands, Poland, Portugal, and Spain have exceeded their target pumping level.
Austria, Bulgaria, Hungary, and Latvia lag behind. Austria shows a clear trend to reach the target level of gas reserves by Oct. 1, while Bulgaria and Hungary have also stepped up pumping, but may be a few days behind the target.
In early September, reports emerged that Naftogaz had filed a lawsuit against Gazprom to the International Court of Arbitration, a multi-national body for settling commercial disputes based in Paris, France.
In turn, Gazprom has threatened Naftogaz of Ukraine with sanctions and the suspension of financial operations.
“Gazprom considers the filing of an appeal by Naftogaz of Ukraine as an unfriendly step and a continuation of the dishonest behavior of the Ukrainian company, and that further attempts by Naftogaz to seek consideration of the dispute in the International Court of Arbitration may lead to the fact that the Russian state authorities have every reason to impose a sanctions regime on Naftogaz and include it in the sanctions list,” Gazprom said in a statement.
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