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[BUSINESS] · Austria, Germany, Greece, Netherlands, Poland · 30 sources

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European natural gas prices hit four-year high amid supply concerns

European natural gas prices have surged to their highest levels since December 2022, with the TTF benchmark contract reaching approximately 90 euros per megawatt-hour. This price spike is driven by several converging factors, including geopolitical tensions in the Strait of Hormuz, where reported attacks on merchant tankers have heightened fears regarding LNG supply security.

Additionally, the seasonal push to refill gas storage facilities ahead of winter is increasing demand. Current EU storage levels are reported at approximately 74.58 percent, which is significantly lower than the 85 percent recorded during the same period last year. Regional variations are notable: Germany’s storage is at roughly 61 percent, while Austria stands at approximately 69 percent. In contrast, Poland has reached nearly 99 percent capacity.

To mitigate supply risks, Germany’s state-owned company SEFE has been instructed to procure additional gas for storage. While ten US LNG cargoes are expected to arrive in Northwest Europe by October 23, competition for supplies is expected to intensify as winter approaches and demand from Asia rises.

Entities

Austria · European Union · Gas Infrastructure Europe · Germany · Ministry of Economic Affairs and Climate Policy · Netherlands · SEFE Securing Energy for Europe · Strait of Hormuz · TTF · TTF Amsterdam

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