European Natural Gas Prices Sent Soaring as Freezing Temperatures Arrive

Natural gas prices across Europe were sent soaring this week, as flows through a major Russian pipeline have remained well below normal levels for over a month.

European gas prices rose over 7% on Monday morning, with the price of TTF January futures reaching $1,730 per 1,000 cubic meters, or about €147 per megawatt hour. The latest increase in the price of natural gas has been fuelled by Germany’s resistance to approve the Nord Stream 2 pipeline, which would otherwise boost much-needed supplies to the continent.

The sudden increase in natural gas prices comes just as cold temperatures are forecast to blanket several major European cities in the coming days, threatening to add even further strain on European households. To make matters worse, Germany’s natural gas emergency reserves have fallen to a “historically low level” of less than 60% last week, said INES, the country’s association of underground gas storage operators.

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