Austrian company compensated, likely to say goodbye to Russian gas, prices in Europe skyrocket

Benchmark European gas prices jumped to their highest since November 2023 on November 14.

A docking station for the Nord Stream 1 pipeline in Lubmin, Germany. (Source: AP)

Gas prices rose after Austrian energy company OMV warned of possible supply disruptions from Russian gas pipelines, as well as a surge in demand for heating and electricity due to cold weather.

Natural gas futures on the Dutch TTF exchange, the benchmark for European gas, rose 5% early on November 15.

As of 1:50 p.m. on November 15 (local time), the price has decreased slightly but still increased by 4% during the session, reaching 47.83 USD (equivalent to 45.40 EUR) per megawatt-hour (MWh).

Earlier, on November 13, OMV said it had received an arbitration ruling from the International Chamber of Commerce (ICC) regarding unstable gas supplies from Gazprom Export, which were to end in September 2022.

The company was awarded $242 million (EUR 230 million), plus interest and legal costs, and will take the necessary steps to enforce the judgment immediately.

OMV confirmed that it can still fully supply the contracted amount of gas to customers if Gazprom Export's gas supply is interrupted.

Furthermore, OMV's gas storage in Austria is now at over 90% capacity.

In addition to the risk of disruptions in gas supplies from Russia, European gas prices have also increased as colder weather increases demand for gas-fired heating and electricity generation.

Demand for gas and electricity from this energy source has increased sharply in recent days due to the “Dunkelflaute” situation - a prolonged period of weak winds in Germany, leading to low wind power output.

Source: https://baoquocte.vn/cong-ty-ao-duoc-boi-thuong-co-kha-nang-tam-biet-khi-dot-nga-gia-o-chau-au-tang-phi-ma-293867.html