European gas prices exceed $2,300/thousand cubic meters because of supply decline via Nord Stream

MOSCOW. July 27 (Interfax) - The spot price for European gas on Wednesday morning exceeded $2,300 per thousand cubic meters after the decommissioning of another gas-pumping unit along the Nord Stream pipeline.

The price of the nearest August TTF futures on ICE Futures rose to $2,385 per thousand cubic meters in the morning.

Trading closed at $2,118 per thousand cubic meters the previous day, and prices have averaged $1,741 per thousand cubic meters since the beginning of the month.

Gas pumping via the Nord Stream pipeline has decreased to 31 million cubic meters per day since the beginning of the new gas day following the decommissioning of another gas-pumping unit. Gazprom has ceased pumping because of the end of the time between overhauls before maintenance and repairs in accordance with the instructions of the Federal Environmental, Industrial, and Nuclear Supervision Service (Rostechnadzor), and accounting for the technical condition of the turbine engine.

Analysts at the Rystad Energy research company note that it would be very difficult for the European Union to achieve the target level of 80% of reserves in underground gas storage (UGS) facilities by November 1 at the current level of supplies via Nord Stream 1. The analysts also warn that the upcoming hurricane season will complicate United States LNG supplies to Europe.

Prices in Asia have also reacted to rising prices in Europe. The January futures contract, currently the most expensive, for the JKM Platts LNG index rose to $1,900 per thousand cubic meters. The JKM (Japan Korea Marker) Platts Index reflects the spot market value of cargo shipped to Japan, South Korea, China, and Taiwan.