STAVANGER, NORWAY (Reuters) – The uncertain future of Russian gas transit through Ukraine continues to weigh on gas prices in Europe, despite well-stocked winter stocks, TotalEnergies Chief Executive Patrick Pouyanné told Reuters on Monday.

A transit agreement providing for the delivery of Russian gas to Europe via Ukraine, which last year still accounted for 15 billion cubic metres (bcm) of the EU’s total gas consumption of 295 bcm, is due to expire at the end of this year.

Ukraine has said it will not extend the deal. There are also concerns that gas flows could be cut off prematurely because of fighting in Russia’s Kursk region, where the transit point to Ukraine, Sudzha, is located.

“One of the main factors is this transit for Ukraine, because even if the stocks are full, I am not sure that we are totally covered in the event of an interruption,” TotalEnergies CEO Patrick Pouyanné said in an interview alongside an energy conference in Norway.

Gas storage levels in Europe were last seen at 91.2%, having reached the November 1 target two months ahead of schedule, according to the association of European gas infrastructure operators Gas Infrastructure Europe (GIE).

The gas market in Europe will remain exposed to volatility as there is not much new supply to add, Pouyanné said, pointing to delays in new liquefied natural gas (LNG) projects such as Golden Pass in the United States.

“So we are still in a phase where we don’t have much margin on the energy supply,” he added.

This situation is expected to continue until 2027, according to the CEO.

The first-month reference contract at the Dutch TTF centre traded at 37.03 euros per megawatt hour (MWh), according to LSEG data.

At the beginning of the month, the price exceeded 40 euros, reaching its highest level since December, due to fears of a disruption in transit due to the fighting in Kursk.

(Reporting by Nora Buli in Stavanger; by Elena Smirnova; edited by Zhifan Liu)

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