The spot natural gas price in Europe soared above $1,700 per thousand cubic meters (tcm) on Thursday evening on updated weather forecast predicting decreasing temperatures.
Gas price in Europe is also rising amid statements regarding the prospects for Nord Stream 2 gas pipeline linking Russia and Germany, low gas storage reserves and a decline in wind power generation in the continent.
At the end of the trading session on Thursday, the price of January futures on TTF index for gas on the ICE Futures exchange reached $1,714 per tcm, the Russia based Interfax news agency reports.
The updated weather forecast promises cold weather for Europe from the beginning of next week: a continuous decrease in temperatures throughout the week and colder weather than previously expected.
The German energy regulator on Thursday announced that the decision on the launching of the Nord Stream 2 pipeline will not be made until the second half of 2022.
In November, the average spot price of natural gas at the Dutch TTF hub – the main gas hub in Europe – was $945 per tcm, while the average price in December stands at $1,205 per tcm.