European gas prices drop on Russia news

Gas prices in Europe decreased by 4.5% at the opening of trading on Tuesday amid rising supplies from Russia, according to ICE Futures data.

The cost of December futures on the TTF hub in the Netherlands fell to $899.6 per 1,000 cubic meters or €75 per megawatt-hour in household terms.

Prices fell on the news that direct Russian gas supplies via the Yamal-Europe pipeline to Germany resumed on the evening of November 8. Data by European gas transmission operator Gascade shows that by Tuesday morning, deliveries more than doubled to 860,000 cubic meters per hour compared to the previous day’s 360,000 cubic meters per hour.

Direct gas supplies via the Yamal-Europe pipeline to Germany reversed course on November 6. The gas ended up in Poland, which often buys reverse gas supplies from Germany in order to avoid the appearance of buying gas directly from Russia.

European gas prices have more than tripled this year as the EU grapples with energy shortages ahead of winter. European customers are waiting for the launch of Russia’s Nord Stream 2 pipeline, which connects the gas fields in Siberia to Western Europe. The construction of the pipeline was completed in September, and it is now awaiting approval from EU regulators. However, according to Bloomberg, the process of obtaining permission from the German regulators to operate the Nord Stream 2 pipeline could be delayed until May.

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