The price of natural gas from the Dutch TTF hub today dropped below 26 euros per megawatt hour for the first time in a year and eight months. Around 5 p.m. CET, 25.18 euros had to be deducted for a megawatt hour.
The last time less than 26 euros per megawatt hour had to be paid was at the end of September 2021. Experts attribute the drop in prices to excess supply and do not rule out a further drop in prices, reports the German news agency DPA.
Gas prices began to decrease significantly in the middle of last December, after a price record of almost 346 euros per megawatt hour was reached at the end of August. At that time, Russia began to rapidly reduce or stop supplies to EU members.
In response to the sudden increase in prices, the members of the Union agreed, among other things, to dynamically cap natural gas prices at 180 euros per megawatt hour. The mechanism, on which the members reached an agreement after long-term coordination last December, began to be used in mid-February.
Also, the relatively mild winter did not excessively empty the underground gas storages, and now their accelerated filling is taking place before the next autumn-winter season. The EU’s goal is to reach at least 90% gas storage capacity at the beginning of next winter, currently it is already at more than 66%.