European gas prices reach a one-year peak
European gas prices have surged to their highest levels in a year, accompanied by warnings that Russia may stop supplies. Read Full Article at RT.com.
TroibNews 
Natural gas prices in Western Europe surged on Thursday amid concerns that Russia might cease its supplies, following warnings from Austrian state energy company OMV.
During morning trading, the price of gas futures for December delivery at the TTF hub in the Netherlands experienced an increase of as much as 5%, reaching approximately €475 per thousand cubic meters, or €46 per megawatt-hour, before slightly decreasing later in the day. This marked the highest level for gas futures since December 2023.
The increase in gas prices followed OMV's announcement late Wednesday regarding a potential halt in gas supplies from Russia due to its ongoing legal dispute with Gazprom, the Russian state energy giant. OMV had earlier reported “irregular” deliveries from Gazprom to Germany, which completely ceased in September 2022, leading the company to file a lawsuit against Gazprom's subsidiary, Gazprom Export.
On Wednesday, OMV revealed that it had won the lawsuit and was awarded €230 million in damages, which it intended to “offset” by withholding its monthly payments for gas under its contract with Gazprom.
OMV cautioned that this decision could lead to “a deterioration of the contractual relationship” with Gazprom and potentially result in a “halt of gas supply.” Nevertheless, OMV asserted that it would be able to maintain gas deliveries to its customers by utilizing its storage facilities in the event of disrupted supplies from Russia.
OMV's long-term agreement with Gazprom, set to expire in 2040, has allowed it to source Russian gas. Despite Austria’s commitment to reduce its reliance on Russian gas, the country has encountered challenges in finding alternative suppliers, as imports from other nations tend to be significantly costlier.
In fact, last year, Austria's imports of Russian gas returned to pre-Ukraine conflict levels, with the country bringing in nearly twice the amount of gas necessary for its economy. The steady flow of Russian gas enabled Austria to become a net energy exporter to other European nations.
In light of OMV's warning, Austrian Energy Minister Leonore Gewessler reassured that the country's gas supplies remained secure, emphasizing that preparations for a potential supply disruption had been made well in advance and that gas storage facilities were at full capacity.
“The current developments surrounding the OMV supply contract for Russian gas are to be taken seriously, but do not pose an immediate threat to our security of supply. Austria can and will manage without Russian gas,” Gewessler wrote on X on Thursday, while also noting that “it is clear that a sudden interruption in supply could cause tension on the gas markets.”
Mathilde Moreau contributed to this report for TROIB News
During morning trading, the price of gas futures for December delivery at the TTF hub in the Netherlands experienced an increase of as much as 5%, reaching approximately €475 per thousand cubic meters, or €46 per megawatt-hour, before slightly decreasing later in the day. This marked the highest level for gas futures since December 2023.
The increase in gas prices followed OMV's announcement late Wednesday regarding a potential halt in gas supplies from Russia due to its ongoing legal dispute with Gazprom, the Russian state energy giant. OMV had earlier reported “irregular” deliveries from Gazprom to Germany, which completely ceased in September 2022, leading the company to file a lawsuit against Gazprom's subsidiary, Gazprom Export.
On Wednesday, OMV revealed that it had won the lawsuit and was awarded €230 million in damages, which it intended to “offset” by withholding its monthly payments for gas under its contract with Gazprom.
OMV cautioned that this decision could lead to “a deterioration of the contractual relationship” with Gazprom and potentially result in a “halt of gas supply.” Nevertheless, OMV asserted that it would be able to maintain gas deliveries to its customers by utilizing its storage facilities in the event of disrupted supplies from Russia.
OMV's long-term agreement with Gazprom, set to expire in 2040, has allowed it to source Russian gas. Despite Austria’s commitment to reduce its reliance on Russian gas, the country has encountered challenges in finding alternative suppliers, as imports from other nations tend to be significantly costlier.
In fact, last year, Austria's imports of Russian gas returned to pre-Ukraine conflict levels, with the country bringing in nearly twice the amount of gas necessary for its economy. The steady flow of Russian gas enabled Austria to become a net energy exporter to other European nations.
In light of OMV's warning, Austrian Energy Minister Leonore Gewessler reassured that the country's gas supplies remained secure, emphasizing that preparations for a potential supply disruption had been made well in advance and that gas storage facilities were at full capacity.
“The current developments surrounding the OMV supply contract for Russian gas are to be taken seriously, but do not pose an immediate threat to our security of supply. Austria can and will manage without Russian gas,” Gewessler wrote on X on Thursday, while also noting that “it is clear that a sudden interruption in supply could cause tension on the gas markets.”
Mathilde Moreau contributed to this report for TROIB News
