Gas prices in Europe peak due to heat

The heat in the European countries since last week has sent gas prices soaring: the spot price for 1,000 cubic meters of gas is $363 (the price of gas delivered on June 21 at the TTF hub in the Netherlands), Report informs referring to the Oil and Gas Information Agency.

This indicator is the highest over the past three years and three months: since the beginning of March 2018.

Three years ago, the legendary cold front ‘The Beast from the East’ raged in Europe, and prices at that time soared to $1,000 per 1,000 cubic meters.

As for 2021, since January, the average price of a Day-Ahead contract on TTF has already amounted to $264 per 1,000 cubic meters. At the same time, the budget of the Russian gas exporter Gazprom for 2021 includes the average price for exporting crude at $170 per 1,000 cubic meters.

Due to the heat, energy consumption for air conditioning is increasing. Power plants consume more gas, which could be directed to replenish reserves in underground gas storage facilities that were empty due to the cold winter.