European gas prices surge above $500 on cold snap, storage drawdowns

European natural gas prices climbed above a key threshold on January 22, reaching their highest level since March 2025, amid colder weather and faster withdrawals from storage.

According to data from the London-based ICE exchange, gas prices rose by about 4% during the trading session, with February futures at the Dutch TTF hub—the European benchmark—hitting $505 per 1,000 cubic metres. This corresponds to €41.82 per megawatt-hour, as ICE contracts are priced in euros, Caliber.Az reports via Russian media. 

The rally comes as a cold snap across parts of Europe has boosted demand for heating, prompting increased withdrawals from underground gas storage facilities. Gas reserves in EU storage sites have fallen below 49%, highlighting growing seasonal pressure on supplies.

Since the start of the heating season on October 13, European Union countries have withdrawn around 43 billion cubic meters of gas from storage. Net withdrawals—total withdrawals minus injections—have exceeded 38 billion cubic metres over the same period.

Market participants are closely watching weather forecasts and storage levels, as both factors are expected to remain key drivers of price movements in the coming weeks.

By Sabina Mammadli