European gas touches €100 for first time since 2022 energy crisis as consumers, industry feel the pain
Analysts warn consumers and industry could face higher bills as low storage and Middle East supply disruptions tighten the market.
- On Wednesday, October 28, European natural gas prices topped €100 per megawatt-hour for the first time since December 2022, as the benchmark Dutch TTF contract surged more than 4% amid Middle East shipping disruptions tightening supplies ahead of winter.
- Conflict in the region has sharply reduced liquefied natural gas shipments from Qatar, leaving European storage at roughly 74.6% capacity as of October 25, well below the five-year average of about 86% entering the heating season.
- Industrial producers, including steel and fertilizer, are already reducing output due to high gas costs, while European Union governments have spent €17.9 billion this year to cushion the effects on households and firms.
- European Union energy chief Dan Jørgensen warned on Wednesday that the bloc faces a "new energy crisis," while analysts suggest Europe may need to curb gas consumption to ensure supplies last through March.
- Equinor CEO warned of potential late-winter price spikes if cold weather boosts demand, while analysts estimate the global liquefied natural gas market may not rebalance until autumn 2028, keeping European energy security at risk.
321 Articles
321 Articles
The price of natural gas in the European market almost tripled during October, reaching its highest level since the end of 2022, exceeding $1,000 per thousand cubic meters.
Gas in Europe jumped above €100 on the risk of renewed war with Iran <p>European gas futures rose to €103.16 per MWh due to geopolitical risks and low supplies. Repositories are 75% full.</p>
Russia is outlawed as a supplier for the few cargoes from the Middle East. Europe has to expect a further price surge.
Gas costs more than 100 euros per megawatt hour for the first time since 2022. Commissioner warns of harsh winter, the storage facilities are only 75 percent full.
The financial gas drama has been in the pipeline for months, but now that it is getting colder, as a reporter you notice it sinking in with households. The gas price is skyrocketing, hitting 100 euros per megawatt-hour on the global market on Wednesday, and suppliers are charging households more than 2 euros per cubic meter for new energy contracts.
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