The TTF on the Dutch market fell 4.67% to 72.75 euros per megawatt hour (MWh) for delivery in February.
Almost five times cheaper than in August: Europe’s wholesale natural gas price fell to its lowest level since the start of the war in Ukraine on Monday, continuing its decline on the back of a relatively warm winter that saves inventory. The benchmark contract for the continent, the TTF on the Dutch market, fell another 4.67% to 72.75 euros per megawatt hour (MWh) for delivery in February, around 09:35 (08:35 GMT) Monday morning, the price the lowest since February 21.
The price of gas, for delivery the following month, has lost nearly 50% in one month… and has largely come down from the peaks of the summer: in August 2022, it had peaked at 342 euros per megawatt hour. Gas prices began to rise in the fall of 2021, with the start of a reduction in Russian gas deliveries to Europe, then very sharply from the invasion of Ukraine on February 24, 2022. Since then, gas pipelines between Russia and Europe have almost all shut down. Volumes traded on Monday were weak as the main commodity market, London, was closed. This downward trend was made possible thanks to “significant gas stocks that have been built up and demand that is moderating, in particular thanks to favorable weather conditionsexplains Sebastian Paris Horvitz. “This is good news for European states and for the economies of the region.“, he underlines.
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The price of gas affects electricity, as many European power plants burn gas to generate electricity. In France, the price of wholesale electricity for delivery in 2023, which had exceeded 1,000 euros / MWh at the end of August, fell to 240 euros on Friday, the lowest since April. But these variations in wholesale prices are not directly reflected in the prices charged to consumers, as electricity suppliers smooth their rates, especially during this period when prices can jump from one day to the next.
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