Gas meter – illustrative photo.
Amsterdam/Prague – The wholesale price of gas for the European market in the Title Transfer Facility (TTF) virtual trading hub in the Netherlands today fell below 50 euros (1185 CZK) per megawatt hour (MWh). It thus found itself at its lowest level since December 2021. The main reason is weaker demand due to warmer weather in the winter months.
The price of the key gas futures contract for March delivery in TTF fell by more than four percent. It thus dropped to approximately 49.80 euros per MWh. Later it returned to just above 50 euros, but still lost more than three percent.
Last year in August, the wholesale price of gas for the European market reached close to 350 euros (almost CZK 8,300) per megawatt hour (MWh). However, it has declined significantly since then. European countries managed to fill gas reservoirs before this winter, mainly thanks to imports of liquefied natural gas (LNG) from the United States. In addition, the mild winter reduces the demand for heating.
Gas prices on the stock exchange are now significantly below the level of the administratively set ceiling, which in the Czech Republic is CZK 2,500 per MWh. Analysts contacted by ČTK have previously stated that it will take some time before the drop in wholesale natural gas prices is reflected in prices for Czech households, as traders had to buy energy supplies for them on the market ahead of time at higher prices at the time.