EUROPEAN GAS PRICES GROWTH
BLOOMBERG- June 23, 2022 - European natural gas prices rose as Germany plans to trigger the second stage of the country’s gas-emergency plan amid a reduction in Russian supplies.
German Economy Minister Robert Habeck will enact the “alarm” phase of the plan when he speaks at 10 a.m. local time Thursday on energy and supply security. He warned Wednesday of further supply cuts in Russian gas after deliveries were slashed on the key Nord Stream to pipeline to Europe.
The Russian supply curbs, which Germany has called political, has crimped flows to buyers across Europe just as nations stockpile gas for the heating season and further heightened the risk of energy shortages this winter. The Nord Stream pipeline to Germany is operating at about 40% of capacity after flows were cut last week in a move Russian gas exporter Gazprom PJSC blamed on a technical problem.
The second stage of Germany’s emergency gas plan could mean a change in the law to allow energy companies to pass on cost increases to homes and businesses. It may also involve firing up more coal-fired power plants to minimize gas consumption.
Amid the escalating gas crisis, Italy and Greece plan to once again call for the need to cap natural gas prices, as energy costs are on the rise.
Dutch front-month gas futures, the European benchmark, gained 3% to 131 euros per megawatt-hour after slipping 1.3% at the open. Prices have climbed more than 50% since the Nord Stream flows were curtailed.