Exchange gas prices in Europe closed trading with an increase of almost 20%

MOSCOW, 27 Sep — PRIME. Exchange prices for gas, after a sharp jump above $2,100 per thousand cubic meters near the closure on the statement of Gazprom, stopped just below $2,070 per thousand cubic meters, increased by 19.8% compared to Monday’s settlement price, according to data from the London ICE exchange.

The next – October – futures (according to the index of the largest European hub TTF) opened trading at $1,756.7 per thousand cubic meters (+1.8%), which became the price minimum. During the day, prices fluctuated, but their growth rates did not go beyond 10%. After Gazprom’s announcement, quotes began to sharply accelerate.

The price maximum was 2103.5 dollars (+21.9%). The latest futures traded at 2,067.7 (+19.8%) per thousand cubic meters. The dynamics of quotations is based on the settlement price on Monday – 1725.5 dollars per thousand cubic meters.

Gazprom said earlier on Tuesday that it categorically rejects Naftogaz’s claims “on initiated proceedings” in arbitration regarding the transit of Russian gas to Europe, since services not provided by the Ukrainian side should not be paid. He also stressed that he considers the position of Naftogaz unfriendly, and believes that its preservation could become the basis for sanctions of the Russian Federation against the Ukrainian company, and this would mean a ban on Gazprom from fulfilling obligations to it, including payment.

Since May 11, Ukraine has stopped receiving gas for transit through the Sokhranovka gas measuring station (GIS), citing the fact that it is under the control of Russian forces (on the territory of the LPR). As a result, only one entrance remained for gas transit to Europe – the Sudzha GIS. “Gazprom” stated that the transfer of all volumes to “Sudzha” is technologically impossible, the company fulfills all obligations to European consumers, and transit services are fully paid.

Also in May, the head of Naftogaz, Yuriy Vitrenko, said that Gazprom had not paid the full amount for gas transit to Europe through the Ukrainian gas transportation system for June. Naftogaz believes that the company is starting a dispute with Gazprom over payments for gas transit, he also said.