European gas prices jump 5% amid heat wave and supply constraints

In August, European natural‑gas contracts rose about five percent, with the Dutch‑based TTF benchmark climbing from €44.13 to €46.11 per megawatt‑hour. Analysts link the increase to a heat wave expected to boost electricity and gas demand in north‑western Europe and Italy. Supply pressures are adding to the rise: Norway’s Nyhamna processing plant and maintenance at the Troll field have reduced gas flows, while underground storage across Europe sits at roughly 43 % capacity, down from 51 % a year earlier.

Tempos Energía’s CEO Antonio Aceituno notes that photovoltaic generation lowers daytime electricity prices to €28‑45/MWh but pushes night‑time rates to €122‑140/MWh. He warns that the “solar cushion” that softened summer prices will disappear in winter, leaving gas as the main price driver. Forecasts suggest August‑September prices will stay between €80‑95/MWh, while the last quarter could reach up to €120/MWh, nearly triple the previous winter level. Broader market uncertainty stems from reduced Qatari exports, ongoing geopolitical tensions affecting the Strait of Hormuz, and damage to the Ras Laffan export plant.