European gas price falls to a two-week low below 50 euros per MWh

The wholesale price of gas on the European market fell below 50 euros (roughly 1250 Kč) per megawatt-hour (MWh) today. It reached its lowest level since the end of January. The decline was driven in part by the United States’ efforts to end the military conflict between Russia and Ukraine, Reuters reported.

The price of the key front-month gas contract for delivery next month at the Title Transfer Facility (TTF) virtual trading hub in the Netherlands was down around three percent at 49.8 euros per MWh at about 13:30 CET. Earlier in the week, it had climbed to a two-year high of close to 60 euros per MWh.

More favourable weather forecasts and the prospect of a possible easing of European Union requirements for gas storage levels also contributed to lower prices, Reuters reported. Germany’s Ministry for Economic Affairs and Climate Action proposed easing the requirements on Thursday, citing concerns about the high cost of replenishing stocks.

The rules stipulate that all EU countries must have their gas storage facilities 90 percent full by November. Intermediate targets also apply for February, May, July and September.

„We support less stringent requirements for storage levels,“ a spokesperson for the German ministry said.

„Greater flexibility could help reduce the pressure to fill all gas storage facilities evenly and allow market conditions to normalise,“ the spokesperson added.

According to data from Gas Infrastructure Europe (GIE), gas storage facilities in the European Union were 46.57 percent full on Wednesday, while those in the Czech Republic were 46.80 percent full.