The week started badly in terms of gas prices on the exchanges. In Europe, the quotations of the raw material rose by about 2.5% on Tuesday, increasing the increase from Monday (6.8%). As a result, gas contracts are concluded at EUR 225.50 per MWh.
The scale of the energy crisis is evidenced by the fact that gas prices are currently around 12 times higher than the seasonal average over the past five years.
Experts note that hot and dry weather in Europe has caused water levels in rivers to drop sharply, making it difficult to transport energy resourcesincluding fuel oil and coal.
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This is likely to force power utilities to consume more natural gas as a replacement, at a difficult time when gas supplies from Russia are severely limited.
The water level at a key point on the River Rhine – the most important in western Europe for the transport of fuel and other industrial goods – has reached a new record low. On Monday in Kaub it was only 30 cm – according to the data of the German services. It is predicted to stay in the range of 31-33 cm. In such a situation, the transit of many barges is unprofitable.
Gas dispute from Russia
Meanwhile, there is a dispute between Germany and Russia about a turbine for the Nord Stream 1 pipelinethat “stuck in transit” following repair work in Canada. Russia has reduced gas supplies via the Nord Sream link to 20 percent. its bandwidthciting technical problems.
– The turbine is available – assured the German Economy Minister Robert Habeck during a press briefing in Berlin. – The turbine and its delivery to Russia has always been and will always be a pretext for Gazprom or Putin if Gazprom can speak for itself at all.
European countries have recently increased their liquefied gas purchases to fill the country’s gas storage facilities before the upcoming winterbut LNG may soon become more difficult to obtainwhen competition for this fuel will intensify in the near future.
High temperatures in Asia, including in China, they are increasing the demand for gas there, and companies in this region are increasing their LNG purchases and stocking up for the winter.