Concerns about Russian supply cuts are driving up EU gas prices.

EU gas prices are rising due to worries about Russian supply disruptions.



The cost of natural gas in Europe has increased to its highest level since March as a result of worries that the Russian supply would continue to decline. This news follows the announcement of the closure of another turbine utilised by the Nord Stream 1 pipeline.


On Tuesday, the price of August futures on the Dutch TTF trading exchange reached $2,020 per 1,000 cubic metresthe or €188.68 ($192.5) per megawatt-hour.


The increase comes in response to a statement made by Gazprom on Monday announcing the overhaul and deactivation of a second Siemens turbine at the Nord Stream 1 pipeline. As a result, starting on July 27, the supply through the route will be limited to 33 million cubic metres per day or 20% of the pipeline's capacity. This represents an increase from the 40% capacity cut last month, which Gazprom attributed to a sanctions-related holdup with the return of a different turbine from repairs in Canada.


After reaching a record high of $3,900 per thousand cubic metres in early March in response to Russia starting a military action in neighbouring Ukraine, gas prices in Europe have nearly tripled this year.


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