Le gaz en Europe vaut cinq fois moins cher qu’en août
Translated with www.DeepL.com/Translator (free version)
Gas in Europe is five times cheaper than in August
The wholesale price of natural gas in Europe has fallen to its lowest level since the Russian invasion of Ukraine. The benchmark price - the Title Transfer Facility (TTF) - was hovering around €73 on Monday 2 January, down almost 50% in a month and well down from its summer peak of €342 in August 2022.
Gas prices had started to rise before the war in Ukraine, but they really started to jump from 24 February 2022. The closure of several gas pipelines between Russia and Europe, until then its main customer, mechanically pushed them up.
Gazprom's gas exports to the European Union (EU) and Switzerland fell by 55% in 2022, the Russian group announced on Monday. The company has delivered 62 billion cubic metres to Europe in 2022, compared with 138 billion in 2021, according to an estimate by Thierry Bros, an energy market analyst and teacher at Sciences Po.
Why are prices falling today?
Prices are falling because Europe has filled its reserves to the brim in the summer of 2022; secondly, because the autumn has been very mild; and thirdly, because households and companies have voluntarily reduced their consumption.
There is therefore less need to buy gas. Also, on Monday, European gas stocks were 83.3% full; in France they are 84% full, in Germany 90%, according to Gas Infrastructure Europe.
The price of gas is reflected in the price of electricity, as many European power stations burn gas to produce electricity. In France, the price of wholesale electricity for delivery in 2023, which had exceeded €1,000 per megawatt-hour at the end of August 2022, fell to €240 on Friday, the lowest since April 2022.