Natural gas prices in Europe rose 60 percent in two weeks

The megawatt-hour price of natural gas, which was traded at 79.40 euros on 8 June in Europe, increased by 60 percent to 127.17 euros yesterday.

The gas contract price for July, traded at TTF, the Netherlands-based virtual natural gas trading point with the deepest depth in Europe, started the day at 124.60 euros per megawatt-hour yesterday.

The megawatt-hour price of natural gas, traded at 79.40 euros in Europe on 8 June, hit the lowest closing level in the last 4 months since the start of the Russia-Ukraine war. Thus, the megawatt hour price of natural gas, which rose to 127.17 euros yesterday, increased by 60 percent in two weeks.

The megawatt price of natural gas closed the day at 124.36 euros on June 16, the highest closing level since March 31.

The decrease in the amount of natural gas sent by Russia to Europe and the closure of the Freeport LNG terminal in the US state of Texas due to the fire were effective in the increase in natural gas prices.

Russian energy company Gazprom announced on June 14 that gas shipments to Europe via the Nord Stream line were reduced from 167 million cubic meters to 100 million cubic meters. Gazprom also announced that as of June 16, natural gas could be supplied up to 67 million cubic meters per day through the line.

In the previous statement made by the company, it was stated that the shipments via Yamal-Europe were stopped, and the shipments via Ukraine decreased by about half.

Gazprom supplies gas to Europe via Nord Stream, the Yamal-Europe pipeline and pipelines in Ukraine.

The Russian company has also previously stopped natural gas shipments to Poland, Bulgaria, Denmark, Finland and the Netherlands because they refused to pay in rubles.

Another event affecting the global natural gas markets was the announcement that the facility would be closed for at least 3 weeks due to the fire that broke out at the Freeport LNG terminal in Texas on June 9 in the USA. In the statement made later, it was stated that the facility would not be able to open before the end of the year.