Gas prices in Europe edge up, but have fallen by around 40 percent this year

The wholesale price of gas for the European market is little changed on the last trading day of the year, but is edging up slightly. High wind power generation has curbed demand from gas-fired power plants. Since the start of this year, however, the price has fallen by around 40 percent, Reuters reported.

The price of the key front-month gas futures contract at the Title Transfer Facility (TTF), a virtual trading hub in the Netherlands, was up 0.3 euros at 28.12 euros (680 Kč) per megawatt-hour (MWh) shortly before 11:30 CET. On the last day of last year, it stood at 48.4 euros.

Gas prices have fallen this year even as Europe seeks to gradually phase out its remaining imports of Russian gas. On Dec. 17, the European Parliament approved the EU plan to phase out imports by the end of 2027, removing the last legal hurdle before the ban officially takes effect.

The price decline partly reflects weaker gas demand in Europe, as well as the fact that increased imports of liquefied natural gas (LNG), especially from the United States, have made up for the drop in Russian supplies. The United States is expected to record a record volume of exports to Europe this year.

According to analysts, high wind power generation is helping to offset demand for gas for heating amid the current cold weather, as well as the loss of output from Norway’s Troll gas field. It is the largest gas field in Europe currently in production.