Tension with Russia pushes gas price to record

European gas quotations are on the rise. In the first week of December, the price of the Dutch TTF futures contracts fluctuated around €90 per MWh. That price has now skyrocketed and on Tuesday, December 21, the quotation was €180,265 per MWh, a new record. Just before the market closed, the price did drop slightly, but it still remains unprecedentedly high at €176 per MWh. That price is 870% above the five-year average.

Russia's Gazprom has reduced supplies via the Yamal pipeline - which runs from Russia via Belarus and Poland to Germany - to zero. On Tuesday, gas even flowed from Germany to Poland, according to data from Gascade. Gazprom will also not supply gas via 'Yamal' on Wednesday, December 22, reports the Russian news agency TASS. This causes unrest in the tense market. This is due to a relatively small stock and colder than average weather in Europe. In addition, there is a shortage on the electricity market and maintenance is being carried out nuclear power plants in France. As a result, additional use is made of gas-fired power stations.

Fixed pattern
As has happened many times in recent weeks, several European politicians accuse Russia of reducing gas supplies as a means of political leverage in the rising tensions at the Ukrainian border and for approval of 'Nord Stream 2'. And as usual, the Kremlin swears that this is not the case. Gazprom reports that it will fulfill its obligations properly.

Experts point out that European politicians must also take some responsibility for themselves. Initiatives in the field of sustainable energy generation are being fully encouraged. In addition, security of supply is neglected, while this is very important - especially with energy sources that cannot be turned on with a button.