MET: Falling gas prices may give politicians a false sense of security

As the chief executive of Switzerland-based energy group MET Group told international news outlet Montel, falling gas prices may give European lawmakers a false sense of security. Although gas prices are currently at their two-year lows and it might seem that the worst of the energy crisis is behind us, market participants say that may not yet be the case.

Unused LNG import potential

“I believe [European lawmakers] have indeed succumbed to a false sense of security,” said Joerg Selbach-Roentgen, chief executive of MET Group.

The price of gas for delivery next month at Europe’s most liquid trading hub, the Dutch TTF market, has fallen to around EUR 25/MWh. The price of gas for delivery next month has not been this low for two years, although this level was entirely commonplace before Russia’s aggression against Ukraine.

Forward prices are also falling as a result. For example, the price for the final quarter of this year has dropped below EUR 40/MWh. The first quarter of next year, however, is still trading above EUR 45/MWh.