On January 2, in European trades, gas prices rose to 50.3 euros per megawatt hour (approximately 526 euros per 1,000 cubic meters). This was reported by Bloomberg here.
This indicator is the highest level of gas prices since October 2023.
The rise in gas price is due to three factors. The first one is — Russia's "Gazprom" company stopped gas transit to Europe through Ukraine. The second reason is — the liquefied natural gas production plant in Hammerfest, Norway, has halted its operations until January 9 due to compressor malfunction. The third factor is the cold weather in Northern Europe, which has increased gas consumption for heating in this region.
“This week's shortfall in supplies from Norway (of liquefied natural gas) may lead to an acceleration of gas flow from the storages that act as a buffer. The reserves across the continent have been rapidly depleting since 2021, when the gas crisis was just beginning,” writes Bloomberg.
Nevertheless, the European Commission emphasized that there is no threat to the security of gas supplies to Central and Eastern Europe due to "effective preparedness and coordination both within the region and beyond it."
“The supply of gas is guaranteed through alternative routes (Germany, Italy) and selection from storages,” it is mentioned on the website of the European Union executive body.
“Gazprom” stopped gas transit through Ukraine here
On January 1, “Gazprom” completely halted gas supply through Ukraine, as the five-year transit contract with “Naftogaz of Ukraine” had expired. According to the Russian conglomerate, Kyiv refused to extend the contract, leading “Gazprom” to be deprived of “technical and legal possibilities” for gas delivery.
