A disappointing supply of gas is still pushing up prices on the European gas market. This week, the supply was unexpectedly jeopardized by announced actions by the Norwegian trade unions. And the problems with Russia are far from resolved.
The price for natural gas has risen further in the past week. Yesterday (Tuesday July 5) the TTF closed at €165,07 per MWh. That is the highest quotation since the beginning of March. Today the quotation on the TTF has risen even further, at the time of writing to €165,88 per MWh. This means that gas remains unprecedentedly expensive.
Almost all analysts agree about the cause of the high gas price. Problems with supply to build up sufficient stock for the coming winter. A strike by workers in the Norwegian oil and gas industry gave the market additional momentum to the upside. The action was due to start on Tuesday and the unions threatened to cut Norway's gas exports by 60%. This added fuel to the fire in the already very tense European gas market due to the war in Ukraine. However, the Norwegian government intervened before the start of the strike. “Norway has a vital role in Europe's gas supply and the planned strike could have major consequences for Britain, Germany and other countries,” Labor Minister Marte Mjoes Persen told Reuters.
Subsidy to fill storage
The Netherlands is now also working on filling the gas storage facilities. The government announced on Tuesday that eight companies are using the subsidy scheme for filling the Bergermeer gas storage facility. The scheme was opened a few months earlier. In addition, there are seven companies that fill the rented storage capacity without using the subsidy scheme. The scheme reimburses storage costs and - if necessary - compensates the difference between current gas prices and a possibly lower gas price in the coming winter. The goal is to fill the Bergermeer by at least 68%. In combination with the other surcharges, the Netherlands then arrives at an average fill rate of 80%.
The biggest problem in the European gas market remains the faltering supply of gas from Russia. The Nord Stream pipeline is only 40% utilized. Major maintenance work on the pipeline is planned for next week. As a result, the entire supply via this route is lost. And given the excuse that parts cannot be supplied to Russia - the Russian explanation for the current low utilization rate of the Nord Stream - experts doubt whether the pipeline can be fully utilized again after the annual maintenance.