Europe gas prices down threefold in 2023

The average gas price in Europe at the end of 2023 fell threefold, to almost $464 per 1,000 cubic meters, Report informs via TASS.

The main factors for this decline were warm weather, record high gas storage capacity and decreased demand for gas in the European Union.

In total, at the end of 2023, the drop in gas prices in Europe was about 67%. The average price of gas at exchange trading this year was about $464 per 1,000 cubic meters versus $1,400 a year earlier.

On December 30, 2022, gas futures were trading at about $845 per 1,000 cubic meters, on November 30, 2023 - at $470, then on December 29, 2023, trading closed at around $367.

The slight rise in prices since August was mainly caused by unplanned disruptions in gas supplies to the region. Such events included worker strikes at Australian LNG plants, the expansion of the military conflict in the Middle East, the suspension of production at the Tamar gas field in Israel, and difficulties with shipping in the Red Sea. In addition, the Balticconnector undersea gas pipeline between Finland and Estonia was suspended due to damage.

However, by the beginning of the current heating season, European countries had accumulated a record 99.63% of gas reserves in their underground storage facilities, which allowed price growth to slow down by the end of the year. At the same time, gas consumption in some European countries fell to the 1996 level.