Gas price for the European market falls below 26 euros per MWh, lowest in nearly two years

Wholesale gas prices for the European market have fallen below 26 euros (around CZK 614) per megawatt-hour (MWh), their lowest level in nearly two years. Experts attribute the development to supply outstripping demand and do not rule out a further price decline, the DPA news agency reported today. Last August, wholesale gas prices for the European market climbed to nearly 350 euros per MWh due to cuts in supplies from Russia. Since then, however, they have fallen sharply.

The price of the key front-month gas futures contract fell today to as low as 25.80 euros per MWh at the virtual Title Transfer Facility (TTF) trading hub in the Netherlands. This is the lowest level since June 2021. At around 13:30 CEST, the contract was trading slightly above 26 euros per MWh, down nearly six percent from Wednesday.

Gas prices on the exchange are now well below the administratively set cap in the Czech Republic, which stands at CZK 2500 per MWh. Europe has managed to offset disruptions to Russian gas supplies by importing liquefied natural gas (LNG) and reducing consumption. The mild winter has also contributed to the decline in gas prices.