Europe’s benchmark gas contract briefly reached €100 per megawatt hour as disruptions to Middle East LNG shipping tightened supply ahead of winter. European storage is nearly 75% full, while Germany’s is around 60%, and the article says high prices are affecting industry and consumers.
The Dutch front-month gas contract at the TTF hub briefly traded at €100 per megawatt hour on Wednesday, up about 4% from the previous session. Prices are around triple pre-Iran war levels, while the German front-year baseload power contract rose 1.7% to €159.30 per MWh, its highest since June 2023.
Disruptions to Middle East LNG shipping have tightened supply as Europe enters the heating season. Storage is nearly 75% full across Europe and around 60% full in Germany; Europe’s LNG imports were 30% below the year-earlier level for the week ending October 9, Rystad Energy analyst Mathieu Utting said.
Chemicals, fertiliser and steel companies have reduced output as gas costs rise. Retail energy contracts lag wholesale prices, with much of the impact on consumer bills expected in 2027; British bills are set to rise in January, and German gas tariffs for new customers are up 55% this year. EU governments have spent €17.9 billion this year to cushion higher oil and gas costs, the European Commission said.
