European LNG Prices Hit 4-Year High, Surging Triple Since Early This Year

European natural gas prices have reached their highest level since the 2022 energy crisis, making the prospect of a winter energy crunch increasingly tangible.

On the 28th local time, the front-month natural gas contract on the Dutch TTF exchange rose over 4 percent during the session, surging to 100.9 euros per megawatt-hour (MWh).

This is the first time that TTF futures, the benchmark for European gas prices, have surpassed 100 euros since December 2022, when Europe faced an energy crisis triggered by the war in Ukraine.

TTF futures were trading around 30 euros per MWh in February of this year just before the outbreak of the war involving Iran, but have since skyrocketed more than threefold following the conflict.

Gas prices in Europe, which has a high external energy dependency, have risen more sharply than international crude oil prices.

Recently, the upward trend has accelerated as countries rush to stockpile gas ahead of the winter season.

Expectations that the United States could launch renewed strikes against Iran following the midterm elections on the 3rd of next month have also pushed gas prices upward.

The European Union's (EU) scheduled total ban on imports of Russian natural gas slated for next January is further amplifying price volatility.

According to the EU Agency for the Cooperation of Energy Regulators (ACER), natural gas storage levels among EU member states stood at just 75 percent of capacity as of the 21st of this month.

This falls far short of the EU target to fill storage to 90 percent by November 1 each year.

(Photo: Getty Images Korea)
※ Please note: This article was translated by AI and may contain errors.