European gas prices fall as risk of strike in Australia eases

The wholesale price of gas for the European market fell temporarily by more than 20 percent this morning, reaching 29.50 euros (710 Kč) per megawatt-hour (MWh). This is the sharpest drop since last March. The market is reacting to reports that labour disputes at Australia's largest liquefied natural gas (LNG) export plant may be resolved. Australia is one of the key LNG exporters.

The price of the key September gas futures contract at the virtual Title Transfer Facility (TTF) trading hub in the Netherlands was close to 31 euros at around 8:30 CEST, down approximately 16 percent on the day. However, prices for contracts for delivery in the winter months are significantly higher, with the February contract above 52 euros per MWh. TTF is the benchmark for prices in Europe.

Gas prices have fluctuated significantly this month, rising as much as 40 percent at one point. They have been affected by concerns about disruptions to supplies from Australia, a major supplier to the global market. Australian producers are negotiating with union representatives over wages this week. After talks that continued late into the night, unions representing workers at Woodside Energy's LNG plant are now considering the offer put forward by the company.