The price of natural gas on the European market is falling. While at the turn of August and September a megawatt-hour traded for almost 350 euros, on Tuesday it was less than 116 euros. Gas has been getting cheaper almost continuously for about a month and a half.
Several factors are behind the reduction in the price of natural gas
A megawatt-hour of natural gas is the cheapest on the European market since June this year. The price has also fallen to the level before the Russian troops invaded Ukraine for the first time since the massive price hike. Several factors are behind the cheapening of this important commodity, the most important of which is the increasing supply on the European market.
Large quantities of LNG in Europe
Indeed, more and more ships with liquefied natural gas (LNG) on board are arriving in Europe, easing fears of the European Union being cut off from Russian gas. In addition, the mild autumn weather so far has also played a role, with temperatures soaring above 20 degrees Celsius in many parts of Europe.
And according to some experts, the price of gas will continue to fall. “Natural gas is likely to continue to get cheaper as it flows into Europe, and there will still be liquefied natural gas ships,” Alfa Energy analysts told Bloomberg. The European Union’s growing natural gas storage capacity, which has surpassed the 90% mark, is also playing a role.