Another defeat of the Russian Federation: the cost of gas in Europe has been updated to a minimum

For the first time since the beginning of January 2023, the European Union pumped more gas into storage facilities than was used on 18 March. This indicates the gradual end of the heating season.

On Monday, March 20, 2023, natural gas in Europe was below $450 per thousand cubic meters. This is evidenced by data from the London Stock Exchange ICE.

Thus, futures at the TTF headquarters in the Netherlands fell 7% to €39.8 per megawatt-hour. Prices fell below 40 euros per MWh for the first time since July 2021.

According to ExPro Consulting, gas is becoming cheaper due to lower consumption due to warm weather and stable gas supply. For example, on gas day on March 18, the European Union pumped more gas than consumed into storage facilities for the first time since the beginning of January 2023. This indicates the gradual end of the heating season.

Meanwhile, Europe’s underground gas storage facilities are 55.7% full as of March, holding around 59 billion cubic meters of gas, the highest level in decades at that date.

How does Europe reject Russian gas?

In early March, European Commission President Ursula von der Leyen announced that the European Union is no longer as dependent on Russia’s energy resources as it was before Moscow’s full-scale invasion of Ukraine. According to the politician, 80% of fuel exports from the Russian Federation were completely replaced by supplies from the USA and Norway.

At the same time, according to Eurostat data, gas consumption in Europe from August 2022 to January 2023 decreased by 19% compared to the average of the same period of the last five years. And some European countries have reduced their gas consumption by 40-50%. For example:

  • Finland – 57.3%;
  • Lithuania – 47.9%;
  • Sweden – 40.2%.

Meanwhile, on March 7, it was learned that the European Union will regularly switch to general gas purchases in order to provide sufficient fuel. Therefore, the bloc wants to lower energy prices and ensure stable supply. Ukraine, which plans to buy another 2 billion cubic meters next winter, will also participate in this process. gas.

Source: Focus

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