European Gas Hits Highest Level Since 2022 Amid Threats to Qatari Shipments
Dutch TTF gas prices jumped 3% to 92.30 euros per megawatt-hour, the highest level since December 2022, as Qatari gas shipments face restrictions and European storage drops to 74.62%.
European natural gas prices jumped 3% at the trading open in Amsterdam on Friday, as ongoing escalation in the Middle East continues to restrict Qatari liquefied natural gas (LNG) shipments, and some European nations begin withdrawing from storage as temperatures drop.
The one-month forward contract price at the Dutch TTF hub, the primary benchmark for European gas trading, reached 92.30 euros ($103.40) per megawatt-hour—its highest level since December 2022, when Europe faced its first winter after losing most Russian pipeline gas supplies.
ING commodities strategists Warren Patterson and Ewa Manthey stated that European gas prices remain highly sensitive to developments in the Gulf, with the potential for a significant absence of LNG supplies from the market during a large portion of the Northern Hemisphere winter.
The TTF index had risen 3% on Thursday to close above 90 euros, while European Union gas storage levels stood at 74.62% on October 22, compared to a five-year average of nearly 86%, according to data from Gas Infrastructure Europe.
What Do These Terms Mean?
TTF: A virtual trading hub for gas in the Netherlands, whose price serves as a benchmark for gas prices in Europe.
Liquefied Natural Gas (LNG): Gas cooled to minus 162 degrees Celsius to turn into a liquid, making it easier to transport via ships to importing countries.
Megawatt-hour: A unit for measuring energy quantity, used in pricing gas and electricity, representing the consumption of one million watts for one hour.
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