Natural gas: Above €160, in the wake of EU announcements and Putin’s statements

The price of natural gas in Europe is above 160 euros per megawatt hour, in the wake of the announcements by the European Union on the plan to reduce consumption in the bloc of 27 countries, in order to ensure the supplies of the coming, difficult winter, as well as Putin’s statements that indeed Nord Stream 1 will restart, but with lower flows.

Due to Western sanctions on Russia, Moscow claims that components necessary for the operation of the pipeline do not arrive or arrive late on Russian soil, which affects its ability to continue normal flows to its European customers.

The West responds that this is a game of political expediency, in order for the regime of the Russian president to pressure the EU and the overall front of Western democracies to reduce their support for Ukraine or to pressure Kyiv to come to terms with the Russian invaders, giving them territory and other political assignments.

The Commission has proposed a voluntary target for European Union countries to cut natural gas use by 15% by March, warning them that without big cuts now, they could struggle with fuel over the winter if Russia cuts off the supply of gas.

The target could become legally binding if Russia cuts gas supplies to Europe.

It foresees that the proposal concerns the reduction of gas use by 15% from August to March, in relation to the average consumption of the corresponding period in the period 2016-2021.

The Commission could make the target mandatory if it declares that there is a substantial risk of a serious gas shortage in the European Union.

The Dutch natural gas contract for August deliveryreference point in the Old Continent, was strengthened by 4.239% at 13.46 Greek time in Amsterdam, to 161.005 euros per megawatt hour.