BAKU, Azerbaijan, February 22. The rapid cut of Russia's gas supply pushed up European hub prices, and indirectly Asian spot LNG, to the record-high levels in 2022, Trend reports via the latest overview of European gas market from the International Energy Agency (IEA).
According to the report, In Europe, an average TTF spot price in Europe in 2022 was a record high of 120 euros per MWh ($38/MBtu), nearly eight times the five-year average in 2016-2020.
"Gas prices rose to their highest level in the third quarter of 2022, as the steep decline in Russian piped gas coincided with higher gas burn in the power sector and strong storage injections. Month-ahead prices on TTF spiked to an all-time high of 340 euros per MWh ($99/MBtu) at the end of August," the IEA noted.
As the agency pointed out, the record-high gas prices in Europe put upward pressure on Asian spot LNG prices, which averaged at $34/MBtu in 2022, which is their highest level on record and more than five times their five-year average during 2016-2020.
"The strong increase in gas prices led to record high electricity prices across the EU. In Germany, electricity month-ahead prices averaged at over 80 euros per MWh, which is more than seven times their five-year average during 2016-2020," the report added.
"Unseasonably mild weather since the start of the European heating season, together with continued strong LNG inflow and high inventory levels put downward pressure on European and Asian spot prices, averaging at 60 euros per MWh ($20/MBtu) since the beginning of 2023. Nevertheless, global gas supply is set to remain tight in 2023 and the global balance is subject to an unusually wide range of uncertainties," the IEA concluded.