Reference gas prices on the European market have exceeded 100 euros per MWh

Reference prices for natural gas on the European market exceeded €100 per megawatt-hour on Wednesday, for the first time since December 2022. The increase is being driven by the war in the Middle East and the low level of European reserves ahead of the cold season.

On the TTF exchange in Amsterdam, futures contracts for delivery in the following month rose as high as €100.30 per MWh. At around 16:05, the price stood at €99.97 per MWh, up 4.34%.

Gas storage facilities in the European Union are approximately 75% full, the lowest level for this time of year since 2009. Europe will have to replenish its reserves, which could keep pressure on prices even if the war ends and the winter is mild.

The rise in wholesale gas prices may be reflected in consumers’ bills, including electricity bills, because gas-fired power plants frequently set energy prices during peak periods. Industries such as fertilizer, chemicals, and steel have already reduced production. The last episode of an extreme increase occurred after the start of the war in Ukraine, when prices exceeded €300 per MWh.