European natural gas prices on October 28 exceeded 100 euros per megawatt-hour for the first time since December 2022. The increase occurs amid disruptions in the supply of liquefied natural gas (LNG) from the Middle East and concerns about fuel reserves ahead of winter.
This is reported by Financial Times. According to the publication, November gas futures on the Dutch TTF hub, which is the main price benchmark for the European market, rose to 100.95 euros per MWh during trading, adding about 5%. Subsequently, quotations fell below the 100 euro mark.
Since the beginning of the war with Iran at the end of February, European gas has increased in price almost threefold. Before the escalation of the conflict, prices were around 32 euros per MWh. Current quotations remain below the historical maximum of August 2022, when the cost of gas reached approximately 340 euros per MWh.
The main reason for the increase remains disruptions in LNG exports from the Persian Gulf countries, primarily Qatar. The risks of further escalation of the conflict intensify competition between European and Asian buyers for available fuel shipments.
The situation is complicated by insufficient filling of European underground gas storage facilities. According to the EU Agency for the Cooperation of Energy Regulators (ACER), as of October 21, gas reserves amounted to 75% of storage capacity. This is lower than the average for the corresponding period in previous years.
In its new report, ACER notes that in the summer of 2026, total LNG imports to the European Union decreased by 14%. Significant volumes of Qatari gas did not arrive in the EU during this period, while dependence on American suppliers continued to grow.
According to the European regulator's estimate, the conflict in the Middle East has already increased Europe's gas import costs by 18-33 billion euros compared to the cost of equivalent volumes at lower prices. Additional costs are gradually affecting industry, electricity generation, and consumers.
Most sensitive to the price increase remain chemical industry enterprises, producers of fertilizers, steel, and other energy-intensive goods. Further growth in gas quotations may intensify pressure on production costs and consumer prices.
At the same time, analysts note that the current situation differs from the energy crisis of 2022. Since then, European gas demand has decreased by about 20%, and EU countries have expanded LNG import capabilities from alternative sources. However, a cold winter and new supply disruptions could again accelerate the price increase.
As previously reported by "Kurs Ukrainy", on October 26, gas prices in Europe already exceeded 97 euros per MWh. Crossing the psychological mark of 100 euros became a new stage in the growth of quotations. It should be noted that these are wholesale exchange prices, not tariffs for households.
Based on materials from: Financial Times, ANSA, ACER
