Gas prices in Europe skyrocketed by 20% after Gazprom refuses to increase transit through Ukraine
19 Oct 2021

Gas prices in Europe skyrocketed by 20% after Gazprom refuses to increase transit through Ukraine

The price of November natural gas futures on the Dutch TTF hub increased by more than 20%, reaching 107.77 euros per MWh as of 13:20, or $ 1317.9 per thousand cubic meters.
At the opening of trading on the ICE exchange, the price was at $ 1,054.1 per thousand cubic meters. m, thus, during the auction, it grew by more than 20%, reports RBC.

By 15:00, the November futures price adjusted to 99.9 euros per MWh or $ 1221.7 per thousand cubic meters. m, according to the exchange data.

The rise in cost occurred against the backdrop of Gazprom's decision not to book additional capacities for the transit of natural gas through Ukraine in November.

On October 18, the "Ukrainian GTS Operator" offered at an auction transit capacities for November in the amount of up to 9.8 million cubic meters. m per day through the Sudzha gas distribution station and up to 5.2 million cubic meters. m per day through the station "Preservation". But at the end of the auction, they remained unclaimed.

At the same time, Gazprom booked for November the capacity of the Polish section of the Yamal-Europe gas pipeline in the amount of only 31.4 million cubic meters. m per day (proposed 89 million cubic meters. m / s), as in October.

As reported, in September Gazprom also refused to book additional transit capacity through Ukraine, while purchasing only a third of the proposed transit capacity of the Polish section of the Yamal-Europe gas pipeline in October. In previous months, Gazprom has regularly booked additional solid transit capacity through Ukraine.

At the same time, Gazprom resorted to massive extraction of gas from underground storage facilities in Europe to compensate for the lack of supply capacity. However, if in July the selection was planned for the maintenance period of the basic pipelines "Nord Stream" and "Yamal-Europe", then in August the same technique is used in an emergency mode due to the drop in supplies after the accident at the Gazprom plant in the Urals. In September, Gazprom continued the practice of withdrawing gas from its European storage facilities.

As a result, by the end of September, Rehden, the largest gas storage facility in Germany and the entire EU, owned by Gazprom, was less than 5% full, whereas exactly a year ago this storage facility was 87% full.


Source: https: //mbiz.censor.net

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