Gas prices in Europe have exceeded $620 per thousand cubic meters for the first time in two years.
On Monday, February 10, 2025, gas prices on the European market surpassed $620 per thousand cubic meters for the first time since February 8, 2023, according to data from the London ICE exchange. March futures for the TTF index (the main gas hub in the Netherlands) opened trading at $618 (+3.4%), and by 9 a.m. their value rose to $620.7 (+3.8%) compared to the previous day’s settlement price of $597.7 per thousand cubic meters.
Gas prices began to rise after the expiration of the agreement for the transit of Russian gas to Europe through Ukraine. Ukrainian President Volodymyr Zelensky rejected a proposal to extend the agreement, even if gas would be purchased by third countries. As a result, since 10 a.m. on January 1, Gazprom ceased deliveries through this route, stating that it had lost the technical and legal capabilities to continue pumping. Last year, the company delivered about 15 billion cubic meters of gas through Ukraine, accounting for 4.5% of total gas consumption in the EU.
Currently, the only source of Russian pipeline gas for Europe remains the “Balkan Stream,” which receives fuel from the “Turkish Stream.” Annually, about 14-15 billion cubic meters of gas flow through this route to Romania, Greece, North Macedonia, Serbia, Bosnia and Herzegovina, and Hungary.
The average price of gas futures in Europe last year was $386.5, which is 16.3% lower compared to the previous year. However, gas prices significantly increased in 2021-2022. Since the gas hubs started operating in Europe in 1996, such high prices have not been recorded. The historical record was set in the spring of 2022, when the price of gas reached $3,892 per thousand cubic meters.
