As winter arrives, EU gas costs soar | MENAFN.COM

Monday, 30 January 2023 06:53 GMT

As winter arrives, EU gas costs soar


(MENAFN) Natural gas prices in the EU climbed throughout the week owing to high demand caused by chilly weather, according to Bloomberg on Friday.

Although prices have declined from summer highs due to ample LNG supply that allowed the EU to build up its stockpile, they are expected to rise again.

According to Refinitiv Eikon data, Dutch TTF natural gas futures for next month increased by 1% to €125 per megawatt-hour, while Dutch January contracts increased by 1% to €128.30.

Winter temperatures continue to drive up heating demand, prompting EU nations to begin extracting gas from their storage facilities. As per the outlet, reserves in Italy have already fallen to 93.5% from 95.4% due to increasing demand in November.

The European Commission set limitations for utilizing gas this winter on Thursday, stating that EU storage facilities should be at least 45% filled by February 1.

Experts caution, however, that the situation remains difficult since a quick increase might deplete supplies and expose the market to supply problems.

Uncertainty over Russian shipments through Ukraine is another reason predicted to drive higher prices. Gazprom warned on Tuesday that it may reduce supply to Moldova via Ukraine's pipeline network beginning November 28th, after accusing Kiev of siphoning gas bound for the eastern European republic.

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