Natural gas prices in Europe and Britain remained close to their highest levels since late 2022 on Friday, marking the third consecutive week of price increases. The reference price for natural gas in Europe reached €86.10 per megawatt-hour (MWh) on this day, indicating an increase of nearly 6 percent compared to last week.
Price Increase in Britain
In Britain, the equivalent gas price also remained stable at around 213.00 pence per therm, which signifies a weekly increase of 5.3 percent and reflects a similar upward trend in continental Europe.
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This price increase comes amid ongoing structural concerns about natural gas supply dominating the energy market. Maritime attacks and new targeting tactics near the Strait of Hormuz have limited the delivery of liquefied natural gas (LNG) by sea. Remote and costly routes for ships around the Cape of Good Hope have delayed the delivery of cargoes to European gas terminals.
Unexpected Failures in Norwegian Gas Infrastructure
Unexpected failures in Norwegian gas infrastructure, including reduced processing capacity at the Kårstø plant, have limited the volume of gas delivered through pipelines to Western European hubs, prompting utility companies to raise market prices. Gas storage levels stand at 74 percent, which is significantly below the historical average of around 86 percent for this time of year.
While short-term weather forecasts indicate milder temperatures in the near future, energy offices warn that downward pressure on prices is heavily influenced by declining regional inventories. With storage starting from a much lower base before the peak winter draw, trading offices caution that any cold snap in late October or further disruptions in LNG supply could lead to price increases across the continent.
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