The price of the October futures on the TTF spot index on the ICE Futures exchange at the beginning of the trading session on September 13 reached 59.7 euros per 1 kW•h, or $728.2 per thousand cubic meters. Subsequently, after minor adjustments, it dropped to $730.1.
Experts predict that in the near future the gas price in Europe will reach $850 per thousand cubic meters.
Context. Europe is facing a gas crisis after a harsh winter emptied storage facilities. Increasing reserves was not easy, as the leading supplier, Russia, limited streaming, while Asia was buying up massive amounts of liquefied natural gas (LNG) shipments that could be supplied to Europe. The region cannot count on its own production as well.
The Russian Federation exerts additional pressure on the price. It refuses to increase sales and gas injection into storage facilities amid the launch of Nord Stream 2. Hot weather and low wind speeds are holding back renewable energy production, increasing the use of fossil fuels and driving up the price of coal in Europe by more than 70% this year.
As a result, utilities in Europe are raising prices for consumers. Accordingly, everything else rises in price—from food to transportation costs.
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