Gas prices in Europe hit 10-month low owing to milder weather

By Bahattin Gonultas

ANKARA (AA) – The price of natural gas in Europe has fallen to its lowest level since the start of the Russia-Ukraine war, with mild weather conditions, comfortable gas storage levels across Europe, and a boost in green energy production, according to the latest market data on Wednesday.

The January gas contract price on the TTF, the Netherlands-based virtual natural gas trading venue, opened Wednesday, Dec. 28, at €80 per megawatt-hour. Prices fell to €76.18 per megawatt-hour, down 1.27% from the closing price in the previous trading session, recording the eighth consecutive fall.

The fall in price was aided by a decrease in gas usage brought on by milder-than-normal weather conditions and an increase in gas storage levels in several European nations.

According to Gas Infrastructure Europe, gas storage facilities across the EU were 83.2% full as of Dec. 28.

Portugal is 98.2% full, while Poland and Spain are 96.4% and 93.2% full, respectively. With the highest gas storage capacity, Germany is 88.6% full. Latvia currently has the lowest gas storage level at 47.2%.

The downward movement of the prices was also driven by the rising use of wind power to produce electricity, replacing natural gas.

On Aug. 26, the price of futures gas contracts on TTF climbed up to €348.8.

Writing by Sibel Morrow