European natural gas currently costs as much as it did before the war started in February. On Wednesday, the price for Dutch natural gas was 76.18 euros per megawatt hour. The main reason for the falling gas price is the mild temperatures, which keep natural gas consumption relatively low.
Most recently, temperatures were significantly higher than in the middle of the month, when there was permafrost in large parts of Germany. In addition, considerably more energy could be generated from wind energy, which would reduce the consumption of gas for generating electricity. Thanks to the current weather, natural gas is also being stored again.
These developments have meanwhile contributed to the fall in the price of European gas. The price has already fallen eight trading days in a row and stands at 76.18 euros per megawatt hour for Dutch natural gas (forward contract TTF) on Wednesday. It was last so favorable in February before the outbreak of war.
Record at 345 euros/megawatt hour
Since mid-December, the futures contract TTF (virtual trading point in the Dutch gas network, note) has fallen by about 60 euros per megawatt hour (MWh). The record in the summer was 345 euros per megawatt hour. At that time, a supply freeze from Russia caused the rapid rise in prices.
Despite the current easing, the price of European natural gas is still at a relatively high level. In 2020, TTF was still less than 20 euros per megawatt hour of gas.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
