Natural gas prices in Europe have risen in response to media reports that the Netherlands will end gas production in the Groningen field as of Oct. 1, along with concerns that the continent’s heatwave will raise gas demand and jeopardize supply security.
The price of futures contracts for July per megawatt-hour in Europe, trading on the Dutch-based virtual natural gas trading point (TTF), increased from the level of €37.7 to €49.5 during the day, marking more than a 30% rise.
Gas prices were trading 17% higher compared to the previous closing of €45 per megawatt-hour.
Natural gas prices have reached their highest level since April 5.
Prices in Europe had reached a record high due to the supply-demand imbalance following the outbreak of the Russian-Ukrainian war in February last year and the subsequent supply constraints.
After remaining high for nearly 1.5 years, gas prices fell to €23 per megawatt-hour on June 1, the lowest level since September 2021, as a result of falling gas demand in Europe and increasing gas storage levels.
Prices rose to their highest level in history in August 2022, exceeding €300 per megawatt-hour.
