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Wednesday, February 21, 2024

Gas prices. A megawatt hour costs less than 40 euros on the Dutch market

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The price of gas on the Dutch short-term contract market (TTF) fell to its lowest level since August 2021 and was below EUR 40 per megawatt hour. “I expect the price to drop to as low as €30 soon,” said Machiel Mulder, a professor of economics at the University of Groningen. Consumers will have to be patient before they notice lower amounts on their bills.

Last year, gas prices skyrocketed as a result of Russia’s aggression on Ukraine. In August last year, 1 megawatt hour of gas cost even more than 300 euros. Since then, the price has been gradually decreasing.

There is no risk of gas shortages

On Monday, the price of gas on the gas exchange in Amsterdam fell below 40 euros per megawatt hour. Analysts associate this with favorable information on gas supplies in European countries. It turns out that at the end of winter, gas storage facilities are still more than half full. “There is no threat of shortage now, and energy companies and governments don’t have to buy gas ‘like crazy’ again to fill their storage next year,” commented RTL Nieuws.

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Gas price forecasts

Before the Russian aggression in Ukraine, the price of a megawatt-hour of gas oscillated around 20 euros, reminds Professor Mulder. – Taking into account the cost of processing the liquefied gas that we currently import to Europe, I expect that the price of this raw material will soon drop to as much as 30 euros per megawatt hour – says a lecturer at the University of Groningen, quoted by the NOS portal. Consumers will have to be patient before they notice lower amounts on their bills. “Energy suppliers buy gas in advance, and consumer prices always react to wholesale prices with a delay,” adds Mulder.

Read also: Reduction of the gas price for business by more than half. There is an announcement

Main photo source: Shutterstock

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