Gas prices in Europe fell below $1,850 per thousand cubic meters

MOSCOW, 29 Sep — PRIME. Exchange prices for gas in Europe accelerated the rate of decline to 10.5%, fell below $1,850 per thousand cubic meters, according to the London ICE exchange.

The nearest – October – futures (according to the index of the largest European hub TTF) opened trading at around $1,965.8 per thousand cubic meters (-4.4%). As of 17.34 Moscow time, the cost has decreased to approximately $1,840 (-10.5%). The dynamics of quotations is given from the settlement price of the previous trading day – 2056.6 dollars per thousand cubic meters (+11.3% to the settlement price of Tuesday).

Back in early March, gas prices in Europe, due to fears of a ban on the import of Russian energy resources, updated their historical highs for four days in a row. The price record of $3,892 per thousand cubic meters was reached on March 7. The last explosive growth, at the end of August, was associated with the announcement of Gazprom about the suspension of the Nord Stream gas pipeline for three days for scheduled maintenance. Quotations jumped above 3500 dollars per thousand cubic meters and updated historical records of the settlement price several times.

After a slight decline in prices in recent days have risen again. Growth rates of quotations on Tuesday did not go beyond 10%, until after Gazprom’s announcement they began to grow sharply, reaching $2,103.5 per thousand cubic meters (+21.9% to Monday’s settlement price).

The company said that it rejects the claims of the Ukrainian 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. Gazprom stressed that the unfriendly position of Naftogaz could become the basis for sanctions against the Ukrainian company, which would mean a ban on Gazprom from fulfilling obligations to it, including payment.

In addition, the tension in the gas market causes the impossibility of deliveries to Europe via another route. A subsidiary of Gazprom, Nord Stream AG, the operator of Nord Stream, announced on Tuesday unprecedented damage to three strings of offshore gas pipelines of the Nord Stream system that run along the bottom of the Baltic Sea from Russia to Germany – Nord Stream. and Nord Stream 2. Nord Stream AG is not yet able to estimate the timing of the restoration of the gas infrastructure, the report said. The reasons for the destruction are being investigated.