EU gas prices fall, Ukraine advised to stock up for winter

Futures prices for natural gas (Front Month) in Europe on Friday, April 4, fell sharply by more than 10% - to EUR 35.2/MWh, according to ICE data.

This was announced by the ExPro publication, Ukrainian News Agency reports.

The report says that European natural gas prices have fallen to their lowest level in the last 6 months.

The decline in natural gas prices in Europe is primarily due to the tariffs introduced by US President Donald Trump.

In response, China has imposed a 34% tariff on all American goods, including energy resources. It is expected that this will lead to a significant reduction or almost complete cessation of supplies of American LNG to one of the largest gas buyers in the world - China.

Europe and Asia have traditionally remained competitors for global LNG, especially after the reduction in russian gas supplies to Europe following russia’s invasion of Ukraine in February 2022. China’s reduction in purchases of American LNG suggests that there is more free LNG available to be delivered to Europe.

At the same time, China has been buying almost no American LNG in recent months, importing only three tankers since the beginning of the year, receiving gas from other sources.

Tariffs could also lead to a slowdown in global economic growth, which could reduce demand for natural gas.

In addition, new tariffs could limit the activity of investment funds in natural gas trading in Europe.

Former CEO of the Gas Transportation System Operator of Ukraine (GTS) Serhii Makohon said on his Facebook page that now is a good time to start buying gas for import into Ukraine to create reserves for the winter of 2025/26.

MP Yaroslav Zhelezniak wrote in his Telegram channel that “an article went unnoticed that we will need several billion dollars to purchase gas. Because the russians have ruined a lot for us with their shelling (including during the “energy truce”). And no one knows where to get this money.

Well, our energy rats are still looking for money for russian junk, which in the form of reactors will be operating in 10-15 years….”.

At the beginning of this week, the decline stopped and prices recovered a little, but they are still far from the positions before the fall.

As Ukrainian News Agency earlier reported, Ukraine will have to purchase from 1 to 2 billion cubic meters of gas this year to prepare for the next heating season.

At the end of February, DTEK CEO Maksym Timchenko noted that the exact volume of imports will depend on the restoration of gas infrastructure, production, and weather conditions.