1657023251 The gas price is rising again and exceeds 175 euros

The gas price is rising again and exceeds 175 euros per megawatt / hour

A hot morning for gas with prices falling in Amsterdam, the reference market for the European market have exceeded 175 euros per megawatt / hour (+ 7%) except pore retreat to 168 euros anyway above yesterday’s closing price. The prices of contracts for longer-term deliveries (from September) are nailed to the 170 euro zone, so investors do not expect price cuts in the future. The German giant Uniperfirst customer of the Russian giant Gazpromis in talks with the federal government about a 9 billion euro rescue plan, which also envisages the possibility of Berlin entering the participation structure and the operator being permitted to do so increase prices for consumers regardless of the contracts. Uniper is struggling with the drop in inflows from Russia (today it receives the 40% of the agreed gas) and have to buy fuel from other suppliers at very high costs, he sees his finances deteriorating rapidly. After practically halving its value in the last month, the Uniper share is up on the stock exchange this morning 9%. The federal government has warned that the gas crisis could trigger a wave of bankruptcies in the industry. The next July 11th The pipeline will be closed for ten days north stream 1 which connects Russia and Germany with a capacity of 30 billion cubic meters / year, officially for maintenance. Some observers fear that this could be the factor that will blast the crisis.

German gas giant Uniper in talks with the government over a €9 billion bailout plan

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German gas giant Uniper in talks with the government over a €9 billion bailout plan

In the last year and a half, European gas prices have increased eightfold. In recent weeks, the market has also been affected by the shutdown due to an outage of the Freeport US Terminal where the liquid gas destined for Europe comes from. However, the stop has pushed European prices higher reduced prices in the United States. Meanwhile the Norwegian group equinor has initiated the cessation of work in three of its fields after the group’s employees were laid off strike. The stop will reduce production by 4,500 cubic meters of gas per day. 27,000 barrels of oil equivalent.

These problems occur while all European countries are trying to do this increase as soon as possible the amount of their reserves for the coming winter. A race against time with the sword of Damocles of completely stopping Russian gas hanging. In Germany, the level of stocks is 62%, in Italy we are at 60%, the European average is 59%. To guarantee a reasonably safe winter, you need to reach 90% by fall. Algeria, Another major European gas supplier, notably Italy, is sniffing. The Algerian state company sonatrach announced that he would like to do this increase gas prices and maximize profits. Thanks to the escape from the supplies of To fly“The increase in Algerian hydrocarbon exports was 70% compared to the same period last year,” said the group’s CEO Toufic Hekar. For the time being, the price increase should not affect Italy, with which an agreement has just been concluded Algiers for increasing supplies and new contracts signed between Eni and Sonatrach itself. Before the start of the wars in Ukraine, Italy imported about 40% of the gas it consumed from Russia, Germany more than 50%.

“The European Commission is working on a reform of the energy price system,” confirmed the competition commissioner this morning into the microphones of French TV Bfm Margaret Vestager. “We are analyzing whether another calculation (between gas and other energy prices) is possible in order to moderate this market as long as the crisis lasts,” explained the commissioner, but recalling how the indexation system used up to now before the war “was advantageous” for Europe.

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German gas giant Uniper in talks with the government over a €9 billion bailout plan


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