European gas prices rose on the first trading day of 2025, as the region prepares for winter weather amid the suspension of russian gas transit through Ukraine.
This is reported by Economic Pravda with reference to Bloomberg.
The report said that gas prices under the base contract for the coming month rose by 4.3%, reaching EUR 51 per megawatt-hour - the highest level since October 2023.
Russian gas supplies via Ukraine stopped on New Year's Day after the transit contract between the two warring countries expired, and no alternative is currently envisaged.
It is noted that traders are closely watching whether the loss of russian supplies - an important source for several Central European countries - will lead to a faster depletion of storage stocks.
Gas reserves on the continent are already declining at the fastest pace since 2021, when the gas crisis was just beginning.
This supply disruption coincides with forecasts of sub-zero temperatures in some countries, which will increase demand for heating.
For example, in Slovakia, one of the countries most affected by the supply disruption, temperatures could drop to minus 7°C (19°F) by mid-January.
While Europe is unlikely to run out of gas this winter thanks to existing stocks and supplies from other suppliers, traders may find it more difficult to replenish storage for the next heating season.
Gas prices for next summer have recently exceeded those for the winter of 2025-2026, making replenishment more expensive.
As Ukrainian News Agency earlier reported, on January 1, 2025 at 7 a.m. Kyiv time, the Agreement on Interaction between LLC GTS Operator of Ukraine and PJSC Gazprom for the Physical Connection Points of the russian federation-Ukraine between the gas transmission systems of Ukraine and the russian federation, dated December 30, 2019, expired.
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