Jump over 190 euros in natural gas prices

With a new jump of about 10%, natural gas prices are moving today, approaching 200 dollars per megawatt hour, in the wake of the new cut of Nord Stream flows from Russia.

In particular, the European natural gas contract for August delivery is traded in Amsterdam (TTF) at 193.1 euros the megawatt hour rising 9.3%.

The high of the day was not reached until 197.65 euros the megawatt hour.

Prices have once again taken the upward trend as Russia has restored the flows of the German Nord Stream pipeline after its maintenance work but at reduced levels, initially to 40% and then to 20% of the pipeline’s capacity.

The pipeline turbine that was blocked due to sanctions in Canada, where it had been sent for repairs, has returned to Germany, but Gazprom effectively refuses to receive it, citing incomplete documents sent by Siemens yesterday.

In this context, the state-controlled Russian energy giant informed that it is proceeding with the maintenance of another turbine, but since the previous one has not been put into operation, it will limit Nord Stream flows to 20%.

At the same time, this latest move by Moscow intensifies global competition for sea shipments of LNG cargoes, raising the risk of price spikes and major shortages worldwide.

Traders estimate that LNG prices in North Asia will rise to around $45 per million British thermal units, the highest since early March shortly after Russia’s invasion of Ukraine.

Elsewhere, the 27 member states of the European Union reached an agreement today on the emergency arrangements to reduce natural gas consumption in view of the difficult winter ahead.

The revised plan proposed by the EU makes the voluntary cut – a target of 15% – mandatory if an emergency occurs – for example, a near-total cessation of flows from Russia – but retains significant scope for exemptions for vulnerable or dependent countries fully from the internal natural gas transmission network.