Gas Prices in Europe Close to Record Highs Amid Limited Supplies From Russia
08:41 GMT 28.08.2022 (Updated: 17:04 GMT 12.04.2023)
MOSCOW (Sputnik) - Prices for natural gas in Europe approached record values against the background of limited supplies from Russia, data from the London-based ICE exchange and gas transmission operators revealed on Sunday.
The estimated price of gas futures for delivery in September (TTF hub) amounted to $3,507 on August 26, marking a record value for the entire operation of gas hubs in Europe since 1996. The weekly figure increased by nearly $1,000, or 40%. At the same time, gas quotes on Friday reached $3,525, taking another step towards updating the all-time high of $3,892.
The surge in gas prices in European markets is related to uncertainty in gas supplies. Russian energy giant Gazprom said in mid-August that the Nord Stream pipeline would suspend supplies for three days due to scheduled maintenance of the only working gas pumping unit at the Portovaya compressor station from August 31 to September 2.
According to the Nord Stream AG operator, the pipeline's gas deliveries are again expected at the level of some 31 million cubic meters. Nord Stream has been operating at 40% of its capacity since mid-June, and Gazprom attributed lower volumes to the delays in the return of the Siemens turbine from Canada where it was sent for repairs. On July 25, due to the failure of another turbine, Gazprom further curtailed supplies, with the pipeline currently operating at 20% of its capacity, which is approximately 170 million cubic meters per day.
The application for pumping through the Sudzha gas metering station, according to the Gas Transmission System (GTS) Operator of Ukraine, is 42.2 million cubic meters as of Sunday. The indicator has been held at the level of 40-42 million since the end of May, while deliveries through the Sokhranivka gas metering station are not maintained, as Ukraine has rejected Gazprom's application.