European natural gas prices set to decline in coming months

Oil&Gas Materials 6 September 2021 18:10 (UTC +04:00)
European natural gas prices set to decline in coming months

BAKU, Azerbaijan, Sept.6

By Leman Zeynalova – Trend:

European natural gas prices are set to decrease in coming months after the recently experience surge, Trend reports with reference to the UK-based Capital Economics research and consulting company.

Capital Economics expects the prices to drop from the current 51.79 euros per MWh to 40 euros per MWh in Q3 and to 30 euros per MWh in Q4 2021.

European natural gas prices will start 2022 with 27 euros per MWh in Q1, 24 euros per MWh in Q2, 21 euros per MWh in Q3 and 18 euros per MWh in Q4 2022.

Gas prices significantly rose in Europe due to the decrease in supplies via pipeline and LNG. In August, gas supplies to Europe declined for several days in a row after the accident at the Gazprom plant in Novy Urengoy, which created preconditions for a fuel shortage and also led to higher prices. In early September, analysts called Gazprom's plans to build up reserves in Russian underground gas storage facilities (UGS) as a threat to the European market and consumers. Previously, volumes in European UGS facilities have significantly decreased.

TTF Front-Month contract grew from €40/MWh to €50/MWh in late August, in comparison with 27 days when going from €30/MWh to €40/MWh and almost 50 days for covering the distance between €20/MWh and €30/MWh.


Follow the author on Twitter: @Lyaman_Zeyn