The price of gas in Europe once again surpassed $2,800 per 1,000 cubic meters amid reports of a delay in the launch of the Freeport LNG plant in Texas after repairs.
The price of September futures at the TTF hub in the Netherlands rose to $2,837 per 1,000 cubic meters or 276 euro per MWh (based on the current euro/dollar exchange rate, ICE prices are shown in euros per MWh).
Previously, the US company Freeport LNG stated that it plans to restore partial operation of its LNG terminal after an accident in early or mid-November, and full production in March 2023. It was previously scheduled to restart operations in October and reach full capacity by the end of the year.
The capacity of Freeport LNG enterprises is estimated at 15 mln tonnes of LNG per year, or around 16% of total US exports.
This week, the spot gas price in Europe surpassed $3,000 per 1,000 cubic meters for the first time since the beginning of March, in anticipation of the suspension of supplies via Nord Stream for three days from August 31 due to repairs of the only gas compressor unit remaining in operation.
In turn, Gazprom did not rule out that gas prices in Europe in winter could rise above the record-breaking $4,000 per 1,000 cubic meters.
Experts interviewed by TASS believe that gas prices could rise to a record-breaking $5,000 per 1,000 cubic meters in winter due to possible cold weather and a reduction in stocks in storage facilities. In their opinion, there is no reasonable limit for spot prices in the market at the moment.
Gazprom reported earlier that over 7.5 months of 2022, it reduced gas exports to non-CIS countries by 36.2% to 78.5 bln cubic meters.
Since July 27, the Nord Stream gas pipeline has been used at 20% of its maximum capacity due to the shutdown of several gas turbines. One of them, made in Canada by Siemens Energy, was sent to Montreal for repairs. Due to Ottawa's sanctions against Moscow, the manufacturer initially refused to return the repaired equipment to Germany, but after numerous requests from Germany, it was decided to return the turbine. On July 25, Gazprom announced the forced shutdown of another gas turbine engine at the Portovaya compressor station. Thus, only one turbine remains in working order.
