“The Potential of Natural Gas Prices Falling Below Zero Euros in Some European Regions”

2023-05-29 09:33:35

I look like Andrei Stiru
published on Monday, May 29, 2023 To 11:33 •
4 min read

This summer, the price of natural gas could fall below zero euros in parts of Europe thanks to the combination of abundant supply and weaker demand.

Why is this important?

After the start of the war in Ukraine, the price of natural gas in Europe skyrocketed, reaching a peak of 339 euros per megawatt hour (MWh) in August 2022. Since then, it has fallen by more than 90%, due to a combination of measures aimed at reducing consumption and a higher supply than expected. At the time of writing, the price of natural gas on the main Dutch TTF market is slightly below 26 euros per MWh.

In the news : If demand remains low and enough electricity is produced from renewable sources, the natural gas price will reach a new low during the summer. This was stated at Bloomberg several energy industry insiders.

• The TTF price might never drop below zero euro, but in some parts of Europe the price Day Aheadi.e. the price of electricity for the next day, risks going into d

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