The price of natural gas in Europe fell to a 17-month low as gas tanks were refilled in many countries due to mild weather conditions and more liquefied natural gas (LNG) imports.
The gas contract price for March futures, traded at TTF, the Netherlands-based virtual natural gas trading point with the deepest depth in Europe, opened today at €51.55 per megawatt-hour. The gas contract price fell to €48.77 per megawatt-hour during the day, its lowest level since August 2021.
The price in question fell to €49.71, with a decrease of 4.47% compared to yesterday’s closing at 14.30 Turkish time.
It was noteworthy that the gas price dropped below €50 after 17 months.
Weather conditions kept natural gas consumption relatively low, and thus the refilling of gas tanks and imports of more liquefied natural gas (LNG) in many countries contributed to the drop in prices.
In addition, saving in natural gas, especially in the industry that produces less for cost reasons, was also effective in the decrease in prices.
On the other hand, the price of futures contracts traded in TTF rose to €348.8 on August 26, 2022, after a long period of €20. This, with its high dependence on Russian gas, led to an energy crisis in Europe.
Meanwhile, Europe’s liquefied natural gas (LNG) imports rose 60% last year compared to the previous year.
According to the LNG Outlook 2023 report prepared by Shell, European countries including the UK imported 121 million tons of LNG last year.
Analysts pointed out that in case of a prolonged cold wave before the end of the winter season or in case of supply cuts, the price of natural gas in Europe may rise again.
Source: AA / Prepared by Irem Yildiz