The Magazine for Asian Investors
Europe’s gas prices rose to a new high this week amid freezing temperatures in Europe. Seems that a hard winter is ahead for the people of Europe. The European benchmark of the Natural Gas EU Dutch TTF reached 152.69 euros on Tuesday.
According to information, gas supplies to Germany through the Yamal pipeline from Russia have decreased and completely stopped on Tuesday. Gas prices in the UK have also risen to a new record high of 350 pence per unit.
According to Moscow, there is no connection between the Yamal pipeline gas supplies and the Nordstream2 pipeline, which has not been released. Meanwhile, Gazprom, the gas supplier from Russia, refers to the open orders and that there are no additional ones.
About two-thirds of the gas imported to Germany comes from Russia and other Eastern countries. Most of the gas only flows through Germany and is piped to other European countries such as the Netherlands.
Europe Makes it Hard on Its Own Policies
Bad for Europe, especially Germany could suffer, as wind power generation appears to remain weak and half of Germany’s nuclear power plants will be shut down by the end of the year. Nuclear phase-out, green energy, and high energy prices are putting a lot of pressure on what was once the top exporter of energy in Europe. Now Germany seems to have become dependent on electricity supplies from other European countries. This again shows the poor political decisions in the country.
In addition, bad relations with the main supplier Russia do not make this aspect any easier. Russia had criticized Europe earlier this year that it had a long time to fill the gas storage facilities but did not do so. In addition, one wanted to buy more gas from the U.S., but the U.S. has in the point under Biden its own political difficulties. Now they are complaining in Russia about their own political decisions and blaming others even though it is their own fault. Moreover, Europe has previously shut down its own gas production.
A cold winter is coming for the people in Europe, which will also be expensive for the population.