Region, The European gas price for June fell by 20% to 84 euros per MWh, SEE Energy News
Stock exchange transactions for the delivery of natural gas in June were concluded at a lower price by about 20% compared to previous weeks. The Dutch TTF index, which is a benchmark for the whole of Europe, fell below 84 euros per MWh, after rising to over 100 euros during most of May. This is the lowest level since February 22 – the day before the beginning of the conflict in Ukraine.
The main reason for that is the news that suppliers from Germany and Italy have found a way to continue payments to Gazprom without violating EU sanctions against Russia.
If this trend continues, the effect could be felt by Bulgaria, whose supply is linked to market indices. In case of renewal of delivery by Gazprom, the price of Russian gas, according to the agreement with Bulgargaz, should not exceed 70 euros per MWh. For comparison, the current amount is 83 euros per MWh, including deliveries of Azerbaijani gas, which is much cheaper.
Prices could continue to fall in the case of LNG supplies across the EU. They are expected as early as June, when decisions at the European level on securing supplies for next winter should be adopted.
The first significant quantities of LNG are already on their way to Europe, including Bulgaria. At that time, the warehouse in Chiren is expected to be replenished – whose occupancy rate is slightly below 21%, while the EU average is 42%.
A factor that influenced the decline in natural gas prices is the growing fear of the global recession associated with reduced demand, and thus a decline in production. This caused a drop in CO2 emission prices, which for the first time in the previous month returned to below 80 euros per tonne.
All this should affect the electricity market in the EU, which still remains at a high level of about 200 euros per MWh.
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