On the leading gas exchange in Amsterdam, the price closed on Wednesday at €292.15. That’s the highest slot level ever. On March 7, the price for gas on the Amsterdam stock exchange briefly rose to a historic peak of €345 per megawatt hour, but that same day the price dropped to €227 at the close of trading.
Fear
Gazprom announced last week that the Nord Stream pipeline will close for another three days at the end of this month. According to the Russian state gas company, this is necessary for maintenance. Traders fear, however, that Moscow is using the new Nord Stream shutdown to cut back gas supplies to Germany even further in retaliation for Western sanctions over Russia’s invasion of Ukraine.
What pushed prices up on Wednesday was a news report that it will take longer for a major terminal for liquefied natural gas (LNG), which can serve as an alternative to Russian gas, to start up again. The Texas location has been out of operation since June due to a fire. It is now expected that the terminal will not be running at full power again until March.
Iran
In recent months, Gazprom has already reduced gas flow through the Nord Stream pipeline under the Baltic Sea to one-fifth of its maximum capacity. It is remarkable that Russia is also looking for other buyers of its gas, to compensate for the reduction in supplies to Europe. For example, according to Iranian media, the country has reached an agreement with Iran on the supply of Russian gas and the purchase of Iranian oil.