European gas rates reach one-year high
Date
11/20/2024 1:31:21 AM
(MENAFN) Natural gas prices in Western Europe surged on Thursday, reaching a one-year high, after warnings from Austrian energy giant OMV about the potential cessation of Russian gas supplies. Gas futures for December delivery at the TTF hub in the Netherlands spiked by up to 5%, hitting around €475 ($502) per thousand cubic meters, before slightly retreating later in the day. This marked the highest price level since December 2023.
The price increase followed OMV's warning that its legal dispute with Russia’s gazprom could lead to a halt in gas deliveries. OMV had previously reported “irregular” Russian supplies, which were completely cut off in September 2022. The company recently won a lawsuit against Gazprom, receiving €230 million in compensation, which it plans to offset by withholding its payments under its existing gas contract with Gazprom.
OMV acknowledged that such a move might strain its relationship with Gazprom and risk a supply disruption. However, the company assured it could meet customer demand by relying on gas storage. Austria, which has relied on Russian gas for decades, has struggled to find cheaper alternatives. Energy Minister Leonore Gewessler stated that despite OMV’s warning, Austria’s gas supplies remain secure due to robust storage and preparations for possible disruptions. Nevertheless, she admitted that a sudden halt in supplies could lead to market tensions.
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