The gas price remains fairly stable. That can be called remarkable according to some analysts. This is because developments are underway that would have an impact on the gas listing. From problems with the supply of Norwegian gas to Russia's demand to be paid only rubles.
The TTF natural gas quotation closed on Friday, March 25, at €101,27 per MWh. That is the lowest price of last week. This week the price has risen again and at the time of writing this article the rate is €119,30 per MWh. That is solid, especially when we compare this price with the same period last year. At the time, the gas quotation was below €20 per MWh. But when we compare the price to the rate earlier this month - when the €200 barrier was broken - it is not too bad.
That raises eyebrows among some analysts. The European Union has suffered several setbacks in recent days. The export of gas from Norway is plagued by several unexpected disruptions. The quantity transported to the European Union is therefore lower than analysts had taken into account. In addition, cold weather is forecast in Northwest Europe in the coming days. There is sufficient gas in storage to meet that demand in the short term, but this will delay replenishing the stock for next winter.
Payment in rubles
Russia's demand to be paid in Russian rubles by 'unfriendly' countries is keeping European Union leaders busy. Russia announced today (March 30) that it will not introduce that requirement this week. Germany has already initiated a plan to manage the gas supply. Gas can therefore be rationed if an impasse arises over the Russian demand. Other Member States are also concerned. For example, Greece has asked for urgent consultations with gas suppliers, the Dutch government has called on consumers to be economical with gas and the French energy authority called on consumers not to panic.
The European Union is largely dependent on Russian gas, although alternatives are being sought for both the short and long term. Eon - Germany's largest energy company - signed a memorandum of understanding with the Australian yesterday (March 29). Fortescue Metals to investigate how green hydrogen can be shipped to Europe. The company wants to reduce its dependence on Russian gas. Fortescue has a subsidiary Fortescue Future Industry which has green water hydrogen and ammonia projects in its portfolio. In the agreement, Eon and Fortescue have agreed to investigate how around 2030 million tons of hydrogen can be transported to Germany annually by 5.