The exchange price of gas during trading on December 31 fell below $ 800 per 1,000 cubic meters. m for the first time since November 1, follows from the data of the London stock exchange ICE.
The cost of a gas futures for February delivery according to the TTF hub index in the Netherlands reached 65.5 euros per MWh as of 15.00 Moscow time, or $ 780.86 per 1,000 cubic meters. m at the current rate. On the whole, during the day, gas prices on the exchange fell by about 23%.
Gas in Europe began to fall in price on December 21. Prior to that, it was growing in price at a rapid pace and reached a historically record $ 2200 per 1000 cubic meters. This was due to the high demand for gas, primarily in the Asian market. In addition, the level of gas reserves in European underground storage facilities continued to decline. Finally, the situation was affected by the uncertainty surrounding the certification of the Nord Stream 2 gas pipeline operator Nord Stream 2 AG.
However, since December 21, the gas price began to fall. The pace of the decline accelerated after tankers with liquefied natural gas (LNG) began to go en masse to the European Union instead of Asian markets. Bloomberg reported that during the day from 22 to 23 December the number of US LNG tankers heading to Europe increased by one and a half times and as of December 24 amounted to 15. In addition, against the background of improved weather conditions, the output of European wind farms increased.
On December 29, Gazprom CEO Alexei Miller reported to Russian President Vladimir Putin on the full readiness of Nord Stream 2. However, Germany on the same day said that the situation with the certification of Nord Stream 2 AG has not changed since mid-November.
On November 16, the Federal Grid Agency of Germany announced the temporary suspension of the certification of Nord Stream 2 AG. Explaining its decision, the regulator referred to German law, according to which an operator can be certified only when it is “organized in a legal form in accordance with German law.” The Federal Republic of Germany clarified that while the headquarters of Nord Stream 2 AG is located in the city of Zug, Switzerland, therefore, to manage the part of the pipeline located on German territory, the operator needs to establish a subsidiary in Germany.
Nord Stream 2 has a capacity of 55 billion cubic meters. m of gas per year and passes from Russia to Germany along the bottom of the Baltic Sea, bypassing the Baltic States, Poland and Ukraine. The latter, along with the United States, oppose the gas pipeline, calling it a “political” project. Russia, on the other hand, has repeatedly spoken about its commercial nature.
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