European gas prices fall below 30 euros per megawatt-hour for first time since August

The wholesale price of gas for the European market fell significantly today. During the day, it dropped below 30 euros (about 740 Kč) per megawatt-hour (MWh), reaching its lowest level in almost five months. Analysts attribute this to relatively high supply, after many countries replaced Russian deliveries in recent months with increased imports of liquefied natural gas from other countries.

The price of the key gas futures contract for delivery next month at the virtual Title Transfer Facility (TTF) trading hub in the Netherlands fell by about eight percent today to 29,29 euros. At the start of 2023, a megawatt-hour was still trading at 79 euros. The outbreak of war in the Middle East caused prices to temporarily rise above 50 euros again in early October, but the trend then reversed.

The current price level is well below the peaks reached after Russia began its war against Ukraine. During 2022, gas prices temporarily exceeded 300 euros after Russia sharply reduced gas deliveries to Europe.

Czechs consumed the least gas last year since 1994. Natural gas consumption in Czechia fell seven percent year on year to 7.1 billion cubic metres last year. Gas consumption also declined across the European Union in 2023, by around five percent year on year.