Gas price in Europe surpasses $400 per 1,000 cubic meters

The price of gas in Europe on Tuesday exceeded $400 per 1,000 cubic meters on London’s ICE.

The price of the July futures contract at the TTF hub in the Netherlands rose to $404 per 1,000 cubic meters or 36.16 euro per MWh (based on the current euro/dollar exchange rate, ICE prices are presented in euro per MWh).

The work of the Hammerfest LNG plant in northern Norway was suspended on May 31 due to a gas leak. The Hammerfest LNG plant contributes for roughly 5% of Norwegian gas exports, supplying 6.5 bln cubic meters per year on average. The incident caused last week’s gas price hike in Europe. According to statistics from the Norwegian gas transmission provider Gassco, the plant will resume operations on June 14.

In Europe, gas prices have nearly halved this spring to about $282 per 1,000 cubic meters due to high storage levels, record LNG supplies and mild weather. Storage facilities are more than 72% full, and LNG injections from terminals into Europe’s gas transmission system reached an all-time high of 12.16 bln cubic meters in May.