A new jump in gas prices today Wednesday in Europe following the delay in the process of approving a key new pipeline from Russia Nord Stream 2 which has heightened concerns about whether the continent will have enough gas this winter.
Next month’s gas price in the Netherlands, which is considered a benchmark for Europe, jumped almost 8% today to 101.30 euros per megawatt hour (MWh), the highest level since October 18.
The Dutch gas contract in January jumped 7.8% to 101.61 euros per MWh today while the UK wholesale gas contract for the first three months of 2022 rose almost 12% to 2.45 pounds per unit heat.
The Federal Bureau of Investigation, the German energy regulator, announced yesterday the temporary suspension of the certification process of Nord Stream 2, the gas pipeline that connects Russia with Germany, citing a legal hurdle. The move has dashed hopes that the pipeline will deliver significant gas supplies in the coming months and has caused a rift in the energy market.
Gas prices for the beginning of next year also rose, with the market not expecting significant flows through Nord Stream 2 before the end of the upcoming winter heating season.
.
