Gas price in Europe plunges to September low on Russia boost

European natural gas prices shed $100 in 24 hours, falling below $800 per 1,000 cubic meters at the opening of trading on increased deliveries from Russia, data from the Intercontinental Exchange shows.

The price of December futures on the TTF hub in the Netherlands dropped to $791.6 per 1,000 cubic meters, or $76 per megawatt-hour in household terms.The drop comes amid news of long-awaited increased gas flows from Russia.

Earlier on Tuesday, gas deliveries through the Yamal-Europe pipeline rose by almost a quarter compared with the previous day to nearly 1.1 million cubic meters an hour. In addition, Russian state energy giant and major gas exporter Gazprom filed applications for the maximum volume of gas transit through Ukraine, amounting to 109.3 million cubic meters, for Wednesday, November 10.

Late on Monday, Gazprom announced it had approved a plan for supplying additional gas to five European underground storage facilities (UGS) in November, and that pumping has already started.

Russian President Vladimir Putin last week instructed Gazprom to boost supplies to Europe after completing gas injection procedures into Russia’s own UGS facilities. Gazprom reached the target level of reserves in Russia’s UGS facilities of 72.6 billion cubic meters last week.

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