Gas prices in Europe accelerated growth amid statements by Gazprom

MOSCOW, Sep 27 – PRIME. Exchange gas prices in Europe reacted to Gazprom’s statement about the Ukrainian company Naftogaz by accelerating growth rates by more than 20% and higher than $2,100 per thousand cubic meters, according to data from the London ICE exchange.

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

While the price maximum is 2103.5 dollars (+21.9%). As of 18.40 Moscow time gas contracts are traded for $1981.7 (+14.8%). 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 the claims of Naftogaz “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, there was only one entrance left for gas transit to Europe – GIS “Sudzha”. “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.