European gas prices surge to 2024 peak

The European gas market is experiencing a sharp price increase, driven by reports of Ukrainian forces capturing a crucial transit point in Russia’s Sudzha. This escalation has pushed gas prices to their highest levels of the year.

On August 12, gas prices in Europe surged to their highest since early December 2023, surpassing the $460 mark, Caliber.Az reports citing data from the London-based ICE exchange.

According to information, the cost of September futures at the TTF hub in the Netherlands climbed to $467.6 per 1,000 cubic meters, or €41.405 per megawatt-hour (MWh), marking the peak since December.

On August 8, the Ukrainian gas transmission system operator confirmed that transit deliveries would continue as scheduled. However, uncertainty remains about whether Gazprom will maintain its supplies through Sudzha if the capture is verified.

Sudzha is currently the only operational point for receiving Russian pipeline gas into Europe via Ukraine, following the decommissioning of another major point, Sokhranovka, in May 2022. In 2023, approximately 14.65 billion cubic meters of gas were transported through the Urengoy-Pomary-Uzhgorod pipeline, representing about half of Russia’s gas exports to Europe.