Gas prices in Europe reach highest level since October 2023

Due to the cessation of Russian gas transit through Ukraine, gas prices in Europe continue to rise. According to Bloomberg, they have reached 51 euros per megawatt-hour, the highest level since October 2023.

Additionally, reserves across the continent are depleting at the fastest rate since 2021. Experts report that by the end of 2024, their level in Europe's gas storage facilities had decreased by 25% compared to peak values. While there is no shortage yet, EU countries will face difficulties in replenishing reserves for the next heating season.

Currently, Russian gas is supplied to Europe only through one route - via Turkey. For landlocked countries, liquefied natural gas remains an expensive option due to high transportation, regasification, and further transit costs. Moreover, in the summer months, Europe will have to compete for LNG with Asian countries.