Ukrainian forces have taken control of a critical section of the natural gas pipeline in Sudzha, a Russian border town in the Kursk region. The conflict in the area has been ongoing for three days.
The price of European natural gas has reached its highest level this year. On Wednesday morning, the leading Dutch gas future climbed to EUR 39.5 per megawatt-hour, a level not seen since December of the previous year. This represents a significant increase from February, when the price was EUR 22.3 per megawatt-hour, the lowest point this year.
The seizure of the pipeline section in Sudzha, the only entry point for Russian gas into Europe, has heavily influenced European natural gas prices. The ongoing war between Ukraine and Russia has caused considerable volatility in the market, with Dutch gas futures experiencing significant fluctuations since the conflict began in February 2022. At their peak in April 2022, gas futures reached EUR 345 per megawatt-hour, a stark contrast to the EUR 3.4 per megawatt-hour price before the war in 2020.
The continuing hostilities and control of the pipeline in Sudzha are critical factors in the current and future pricing of European natural gas.
Touchstone Exploration Inc (LON:TXP) is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. Primera Oil and Gas is the Trinidadian subsidiary of Touchstone.
