The price of natural gas in Europe declined on May 26 to new lows not seen since September 2021, to €24.5 per megawatt-hour.
Low demand, a high occupancy rate of European natural gas storage facilities, and an increased share of clean energy in electricity production pushed prices to the lowest levels in 1.5 years.
The gas contract price for June on the Netherlands-based virtual natural gas trading venue, TTF, closed Friday at €24.5 per megawatt-hour, similar to prices on Sept. 27, 2021.
On Monday, the price of natural gas registered at €25.3 per megawatt-hour, 3.2% higher than the previous closing price.
Despite falling to €25 per megawatt-hour, prices are still considered relatively high compared to the 2016–2020 period.
Natural gas prices in Europe reached their peak due to the supply-demand imbalance after the pandemic and supply concerns following the breakout of the Russia-Ukraine War.
Prices were €24.5 per megawatt-hour on Sept. 27, 2021, but escalated demand after the COVID-19 pandemic and greater geopolitical tension pushed prices to the highest level of €300 per megawatt-hour in August last year.
Writing by Nuran Erkul Kaya in London
Reporting by Basak Erkalan
Anadolu Agency
energy@aa.com.tr