February futures prices at the TTF hub in the Netherlands plunged to $796 per 1,000 cubic meters or 68 euro per MWh.
Since the beginning the trading session the price of gas decreased by more than 22%. In comparison with the all-time high achieved last week the price of gas plummeted almost threefold.
On December 21, the exchange price of gas in Europe exceeded $ 2,000 per 1,000 cubic meters for the first time in history amid the coming cold weather and abnormally low reserves in European underground gas storages. However, in the following days, the price went down amid resumption of wind power generation in Europe and news that the number of tankers carrying LNG from the US to Europe increased by a third.
On December 29, Gazprom CEO Alexey Miller, announced that filling the second string of Nord Stream 2 with gas had been completed and that the gas pipeline was fully ready for operation.
The futures prices at the TTF hub are volatile because of the speculative factor and do not reflect the actual price of physical gas supplies to Europe. According to Gazprom, the average gas export price under contracts in 2021 will stand at $280 per 1,000 cubic meters.