Spot gas price in Europe exceeds $2,300 per thousand cubic meters


12 August 2022

The spot price of gas in Europe has exceeded $2,300 per thousand cubic meters. The cost of the nearest (September) futures on TTF on the ICE Futures exchange reached $2,311 per thousand cubic meters on Thursday afternoon, while trading started at $2,200, Interfax notes.

 Gas prices in Europe are rising due to the limited possibilities of transporting gas through the Nord Stream. Its power was reduced by five times.

 European quotes are also spurring rising LNG prices in Asia.

 From August 13 until the end of the month, part of the capacities of the Norwegian Troll field and the Kollsnes gas treatment plant will be shut down for annual preventive maintenance. Production capacity will decrease by 20 million cubic meters of gas.

 In addition, the Gulf of Mexico is about to enter hurricane season (typically peaking between mid-August and mid-November), which could limit US LNG exports.