Gas prices in Europe are falling after the resumption of Russian flows through Turkey, as well as due to forecasts for more sunshine, which cuts the need for fuel and increases the production of photovoltaics, according to Bloomberg.
Flows through TurkStream resumed after the maintenance process was completed on Monday, according to Russian state energy giant Gazprom via Telegram. The connection, with an annual capacity of 31.5 billion cubic meters, connects Russia to the Turkish gas transmission network, as well as to southern and southeastern Europe.
The sunshine will enable Germany, Spain and Italy to increase solar energy production, according to Weather Co. forecasts.
Traders are anxiously watching the slightest change in Russian flows to Europe and any possibility of a planned reduction in consumption on the continent, as Moscow reduced flows earlier this month via the Nord Stream pipeline, which connects it with Germany by 60%. citing technical issues. The European market is already under pressure as various countries try to find every possible source in order to fill their gas storage facilities and thus prepare for winter.
However, all eyes are on the way in which Europe will deal with the complete cessation of gas flows between 11 and 21 July via Nord Stream, due to maintenance work. Germany fears that the flow will be interrupted not temporarily but permanently, in an attempt by Russia to respond to the sanctions imposed on it for its war against Ukraine.
Germany is already looking for alternative sources and is considering importing LNG from Canada, with German Chancellor Olaf Solz discussing the issue with Canadian Prime Minister Justin Trinto on the sidelines of the G7.
The Dutch gas contract, which is a benchmark for the European market, fell 0.6% to 128.63 euros per megawatt hour at 12.15pm, while the corresponding British contract fell 0.5%.
Source: Capital
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