Spot gas prices are growing after the announcement of the results of the auction for the transit capacities of Ukraine and Poland in October. Gazprom refused to book additional transit capacity through Ukraine to the volume of the long-term agreement for the next month, and also bought out only a third of the proposed transit capacity of the Polish section of the Yamal-Europe gas pipeline in October.
The price of the nearest (October) futures for the TTF spot gas index on the ICE Futures exchange reached 75.3 euros per MWh, or $ 912 per thousand cubic meters, during the day. leads “Interfax” exchange data.
The main factor behind the price increase is the low level of gas reserves in underground storage facilities in Europe with limited supply through pipelines and in liquefied form.
About a month remains before the transition from injection to withdrawal from underground storage facilities, and the level of reserves has barely exceeded 70%. On Tuesday morning, reserves stood at 71.73%, 15.8 percentage points below the five-year average.
Gas prices in Europe are growing throughout the year, having increased approximately fourfold over this period. September 9th they are for the first time in history exceeded the mark of $ 700 per 1,000 cubic meters. Experts do not excludethat in October the cost of gas will reach $ 1200 per thousand cubic meters.
Liquefied gas goes mainly to Asia, because prices are higher there, and it goes to Europe in minimal volumes. The second reason for the decline in gas reserves is that it was a hot summer, which led to additional fuel consumption.