European gas price nears 100 euros, highest since late 2022; German storage at 61%
The benchmark Dutch TTF contract rose to 97.64 euros per megawatt hour on Monday, driven by the Iran conflict and the refilling of storage ahead of winter.
Archive image · Photo: Axel Hindemith / Wikimedia Commons, CC BY-SA 3.0 (cropped and resized)
European natural gas prices climbed on Monday to their highest level since late 2022. The benchmark Dutch TTF front-month contract traded at 97.64 euros per megawatt hour in Amsterdam, almost 3% above Friday's level. Prices have risen by about a third since the start of October and have more than tripled since the start of the year.
According to ORF, the war between the United States and Iran is the main driver, as Iran borders the Strait of Hormuz, one of the world's key routes for liquefied natural gas. Europe is also refilling its storage ahead of winter. German storage facilities were just over 61% full, compared with about 75% a year earlier, according to ORF. Berlin recently instructed state-owned SEFE to buy additional gas.
The increase will reach consumers with a delay, as gas is mostly supplied under long-term contracts. At the start of the war in Ukraine, the price briefly exceeded 300 euros per megawatt hour.