The base price of gas in Europe has increased by 4.3%, reaching 51 euros per megawatt-hour. Traders anticipate further growth due to winter frosts and limited alternative supply routes. This was reported by Bloomberg on Thursday, January 2.
Gas reserves in Europe are declining at the fastest rate since the gas crisis began in 2021. The situation is further complicated by forecasts of sub-zero temperatures in several countries, which will increase heating demand. However, as noted in the publication, Europe is unlikely to run out of gas this winter thanks to existing reserves and alternative supplies. Nevertheless, traders are already facing challenges regarding the prospect of replenishing storage before the next heating season.
“The risk is growing that the EU will enter the next winter with low levels of gas storage, making replenishment expensive,” said Arne Lømann Rasmussen, an analyst at Global Risk Management.
The publication also points out that after the cessation of flows through Ukraine, Europe will become even more dependent on liquefied natural gas, particularly from Russia. Last year, Russia supplied record volumes of gas to Europe, becoming the second-largest supplier after the USA.
It is worth noting that on Wednesday, January 1, 2025, at 7:00 AM, the five-year agreement between LLC "Gas Transmission Operator of Ukraine" and PJSC "Gazprom" expired, leading Ukraine to completely halt the transit of Russian gas through its territory.
The suspension of gas transit could impact Slovakia. The country's Prime Minister, Robert Fico, threatened to stop electricity supplies to Ukraine if Kyiv halts the transit of Russian gas to his country after the New Year.