1 of 2 | Natural gas storage levels were a concern for Europe during its pursuit for non-Russian supplies, though prices and supplies are improving. File photo by Roman Pilipey/EPA
Dec. 29 (UPI) -- The Dutch Title Transfer Facility, the European benchmark for the price of natural gas, traded Thursday at levels last seen before the start of the Russian invasion of Ukraine in February.
The Dutch Title Transfer Facility (TTF) peaked at around $365 per megawatt-hour (MWh) in August as Europe scrambled for alternative supplies of natural gas. Before Russian military forces crossed into Ukraine in February, Russia was a primary supplier of crude oil and natural gas to the region, though tight sanctions have pushed those resources aside in favor of supplies from the likes of Norway and the United States.
TTF on Thursday was trading at around $87/MWh and the contract is down about 45% so far in December. The last time prices were this low for any reasonable stretch of time was mid-February 2022, just before Russian forces invaded Ukraine. TTF closed trading on Feb. 21, a Monday, at $71.70/MWh but jumped to $134.30/MWh on Feb. 24, the day the war began.
There were lingering concerns about gas storage levels in Europe in the months leading up to the winter heating season in the Northern Hemisphere, which started mid-December. Much of Europe was socked by frigid cold in the weeks leading up to Christmas, though the bloc managed to avert a deep energy crisis with support from alternative resources.
Data from Gas Infrastructure Europe show European gas storage levels range from around 47% full for Latvia to 98% full for Portugal, which recently secured a new supply commitment from U.S-based NextDecade for LNG from a planned export facility in Texas.
On average, European gas storage levels are 83% full, down from recent highs but far better than storage levels of around 30% from earlier this year.
Russia was long accused of exploiting its rich energy reserves for political gain and was blamed for weaponizing its resources at the height of the war.
The tables, however, have turned somewhat as the EU in early December imposed what it called a market correction mechanism, which included a limit on TTF of $191/MWh for a three-day average, to prevent Russia from capitalizing on the war premium supporting global commodity prices.
