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.