European Gas Prices Soar Amid Supply Disruptions, Weather Concerns

(MENAFN) Gas prices in Europe have surged to their highest levels since October 2023, driven by disruptions in supply following Ukraine’s decision not to renew a gas transit agreement with Russia. The situation is further worsened by forecasts of colder weather, amplifying concerns in an already strained energy market.

At the end of 2024, Ukraine chose to terminate its five-year gas transit contract with Gazprom, Russia's state-owned energy company. This move halted Russian pipeline gas deliveries to several European countries, including Hungary, Romania, Poland, Slovakia, Austria, Italy, and Moldova. Ukrainian President Vladimir Zelensky has argued that the decision was made to reduce Moscow’s energy revenue. However, Slovakia and Hungary have accused him of intentionally creating an energy crisis for political advantage.

On Friday, the front-month contract at the Dutch TTF gas hub jumped over 4 percent, surpassing USD590 per thousand cubic meters (or 53.62euro per megawatt-hour), continuing the upward trend from previous days.

Recent data reveals that EU gas storage levels have dropped to about 55 percent, much lower than last year’s 72 percent at this time and beneath the five-year average of 62 percent.

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