Tuesday, October 7, 2025

The price of gas in Europe is rising amid a strong supply

October 7, 2025

The Dutch and British gas price continued to rise Tuesday morning in response to the strikes on Ukrainian gas pipelines, but gains were limited due to a healthy supply.

LSEG data shows that the benchmark Dutch front-month contract was up 0.12 Euros at 33.29 Euros per megawatt hour at TTF hub, or $11.37/mmBtu by 0959 GMT.

The Dutch November contract increased by 0.14 Euros to 33.47 euros/MWh.

The British day-ahead contracts rose 0.85 pence, to 85.85 cents per therm.

The price of gas has risen in the past week, after Russia launched the largest attack against Ukrainian gas infrastructure since war began. Bullish weather forecasts have also contributed to the rise.

"Russian missile attacks targeted several facilities, which Naftogaz described as the biggest attack to date. A damage assessment is currently underway. "If the damage is significant, there may be a greater need for EU LNG and gas supply," said Wayne Bryan.

He added, "Our forecast is that prices will adjust slightly lower. There is some risk in either direction if we receive any new updates regarding Natfogaz's damage assessment."

The supply of liquefied gas (LNG), however, remains strong. Norwegian production will have some outages in the next week, Bryan said, but should still average 317 mcm/day.

Analysts and data indicate that Europe may need to import 160 additional LNG cargos this winter as a result of lower storage and a decrease in pipeline flows coming from Russia and Algeria. This will increase its dependence on U.S. natural gas.

Analysts predict that the demand for gas this winter will be around 16 billion cubic metres (bcm).

Gas Infrastructure Europe's data shows that EU gas storage facilities were last 82.75% filled, compared to 94.56% last year at the same point.

The benchmark carbon contract in Europe was down by 0.07 euros at 78.68 euro per metric ton. (Reporting and editing by Susanna Twidale; Marwa R. Rashad)

(source: Reuters)

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