September 25, 2022

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Gas price breaks the record again in Europe |  Financial issues

Gas price breaks the record again in Europe | Financial issues

Russia no longer supplies gas to some European countries at all, such as the Netherlands, Finland, Bulgaria and Poland. Other countries, including Germany, the main consumer, have to be content with much less Russian gas than usual. Although Russia cites technical reasons, the Germans say it is a political means of pressure to weaken European sanctions over the war in Ukraine.

low water levels

The energy crisis was made more difficult by the lowering of the water level in the Rhine. Inland ships can thus carry less cargo, while they are important for transporting fuel from the ports of Rotterdam or Antwerp to the European hinterland.

On March 7, the price of gas on the Amsterdam Stock Exchange briefly rose to a historical peak of 345 euros per kilowatt-hour, but on the same day the price fell to 227 euros at the end of trading.

EU member states aim to fill gas storage facilities to at least 80% before the onset of winter. If Russia continues to limit or even reduce gas supplies, countries will have to rely on these supplies quickly.

two winter

So the head of the German Energy Supply Regulatory Authority, Klaus Muller, warned in an interview with T-Online that gas prices are constantly rising. Then the reserves must be replenished again. “It’s important for everyone to realize: It’s not just one winter, but at least two,” he told the news site. ‘Next winter may be more difficult.’

Meanwhile, industrial companies that consume a lot of gas are having a hard time. Belgian zinc smelter Nyrstar recently closed its plant in Budel, Noord-Brabant, due to rising energy costs. According to figures from the Central Statistics Office, Dutch industry consumed 40% less gas last week than in 2019, the last year before the Corona pandemic.

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