Gasprice Reaches Highest Level in Over a Year
The gas price has not been this high in over a year. Last year, the price at the international trading market TTF in Amsterdam was at 30 euros per megawatt-hour, and now it is around 50 euros. It seems that gas will remain expensive for the foreseeable future, with reasons for the price increase including a decrease in Russian gas, tightness in the liquefied gas (lng) market, and weather conditions.
Impact of Weather Conditions on Gas Prices
The recent gray winter weather with little wind led to a decrease in wind and solar energy, resulting in an increased need for gas for electricity production. This drove the price up. The increased gas price also leads to higher energy rates starting from January 1st at major energy companies. Due to uncertainty about future energy prices, most households have already secured a fixed energy contract with prices for gas and electricity locked in for one or more years.
Low Gas Reserves in Europe
The high gas price has led to lower-than-usual reserves in Europe at this time of year. The filling level in European gas storages is currently below 75 percent, compared to over 85 percent last year. The filling level in Dutch gas storages is even less than 60 percent, while it was over 80 percent around the same time last year. Despite the low gas reserves, energy experts and the government do not anticipate a gas shortage in Europe this winter.
Expert Predictions and Future Outlook
Experts believe that there will be enough gas in the coming months despite the tight supply. However, it will be expensive to replenish gas reserves this year, as expected gas prices for the upcoming summer are also high. The situation is less severe than it appears, according to Minister Hermans, who stated that if the filling level becomes worrisome, the government can purchase large quantities of gas through Energie Beheer Nederland to increase the filling percentage.
In conclusion, while the gas prices have reached unprecedented levels, there are mechanisms in place to ensure that there is no gas shortage in Europe. The future outlook remains cautious, with expectations of a gradual decrease in gas prices by the end of this year as the market adjusts to various supply challenges.