Prices on the European gas market have slightly normalized again this week. This does not mean, however, that the market is entering calmer waters. The tight stocks are still causing tension in the market.
Compared to the peak last week with a record price of €180,27 per MWh, the gas price has taken a significant step back. Today (Wednesday, December 29) the rate on the TTF is €103,90 per MWh. This means that gas still remains expensive, more than four times as expensive as the same period last year. According to analysts, the fact that the gas price has fallen sharply in recent days is due to a greater supply of LNG from the US. Gas prices in Europe were well above those in the Asian market last week. This has made several exporters decide to send more LNG tankers to Europe instead of Asia.
The additional supply of gas is not yet reflected in the filling level of Dutch gas storage facilities. In the first weeks of December, the stock was heavily depleted. Some experts warn that if gas is extracted at this rate without increasing the supply, problems with the supply of gas may arise in February. Things are not going well with the supply of extra gas from Russia. Data from the German grid operator Gascade shows that today for the ninth day in a row, Western Europe is transporting gas to Poland through the Yamal pipeline. There is no supply from Russia and today Gazprom has not reserved any space for the export of gas to Europe.
Russia rejects accusations
Poland last week accused the Kremlin of manipulating the European gas market by halting gas deliveries through the Yamal pipeline. “All accusations against Russia and Gazprom that there is not enough gas supplied are unfounded, unacceptable and untrue,” Gazprom spokesman Sergei Kupriyanov told the Moscow Times on Saturday. Russian President Vladimir Putin went a step further a day earlier and said that the European Union owes record gas prices to its own policies. He accused some member states of reselling cheap Russian gas at a much higher price within the EU. Putin also once again called for approval of Nord Stream 2 to bring gas prices under greater control. "The additional deliveries would ensure lower prices on the gas market," the state news agency RIA noted from the Russian president.