European gas prices continue to soar

Futures top highest level since March

Natural gas spot prices in Europe continue to rise with September futures on the TTF hub in the Netherlands jumping to nearly $3,500 per thousand cubic meters on Friday, according to data on the London ICE exchange.

Prices have reached their highest level since March.

The price rally started last week, after Russian energy giant Gazprom said the only operational turbine on the Nord Stream 1 pipeline would be shut down for maintenance works from August 31. Gas transit through the route will be entirely suspended until September 2.

Meanwhile, European countries are trying to fill gas storage facilities ahead of the heating season. The unscheduled maintenance work exacerbates both the risk of a recession and a winter energy shortage across the continent.

Since late July, the Nord Stream 1 gas pipeline has been used at 20% of its full capacity due to the shutdown of several gas turbines. One of them was sent to Montreal for repairs and got stuck there due to Canadian sanctions against Russia over the conflict in Ukraine. 

READ MORE: Canada to return turbines for Russian gas

At Germany’s request, Ottawa announced an exemption for the turbines in July, and sent one of them over, but Gazprom declined delivery, citing irregularities in documentation.

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