Natural gas prices in Europe rose even more as supplies from Moscow dwindled while governments turned to alternative energy sources and urged consumers to reduce consumption.
Underlying futures advanced 5.2%. Germany, Austria and the Netherlands are changing their policies and relying on coal. According to the minister, the main industrial enterprises in Germany are ready to reduce consumption in order to have enough reserves for heating in the winter.
Huge Russian cuts hurt the European economy at a time of high inflation and low growth. Uniper SE, Germany’s largest buyer of Russian gas, said it would find it difficult to supply its customers if the situation remains unchanged. The impact also extends to Denmark, which is announcing an early warning for shortages.
“We do fulfill contracts we sign with our customers now, but to what extent we can continue to do that, I don’t know,” Klaus-Dieter Maubach, chief executive officer of Uniper, said in an interview. “For us, it is a historical moment, we have never seen such a long interruption to that extent of gas flows from Russia.”
Dutch gas futures, the European benchmark, rose 4.6% to €126.20 per MWh by 9:41 am in Amsterdam. On Monday, they gained 2.5%. The UK equivalent rose 6.1% to 213 pence a term.
PJSC Gazprom’s deliveries via Nord Stream remain at about 40% of throughput capacity. There are reports that sanctions against Russia have caused problems repairing foreign-made turbines that pump gas. They will be closed for maintenance for 10 days next month.
Gas reserves in Europe are about 55% full, while storage facilities are still being replenished as usual. But supply disruptions mean filling 80% of stocks by November 1 as planned will become more difficult.
“If these reduced flows persist, this target may be difficult to achieve,” the bank said.
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