Natural gas prices in Europe surged to their highest levels since November 2023 on Thursday, driven by concerns over a potential halt in Russian gas supplies and colder weather increasing demand for heating and electricity.
Dutch TTF Natural Gas Futures, the European benchmark, rose by 5% early Thursday in Amsterdam. By 1:50 p.m. local time, the prices had eased slightly but were still up by 4%, reaching $47.83 (45.40 euros) per megawatt-hour (MWh).
The price jump followed a warning from Austria’s OMV, which said a potential disruption in Russian pipeline gas supplies could be imminent. On Wednesday evening, OMV announced it had won an arbitration case under the International Chamber of Commerce (ICC) against Gazprom Export regarding irregular gas deliveries to Germany. The ruling awarded OMV $242 million (230 million euros), plus interest and legal costs. OMV said it would take immediate action to enforce the award.
OMV also cautioned that this arbitration could strain its contractual relationship with Gazprom Export, possibly leading to a halt in gas supplies. However, the Austrian company reassured customers that it could still meet its full contractual gas obligations in case of any supply disruption. OMV’s gas storage in Austria is currently more than 90% full.
In addition to the risks surrounding Russian gas supplies, colder weather across Europe has further pushed up natural gas prices. The drop in temperatures has led to an increase in demand for heating and gas-powered electricity generation. The region has also faced lower wind power output due to a weather phenomenon known as the “Dunkelflaute”—a period of low wind speeds and limited wind energy production.
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