London, Monday, 22 August 2022
Following Moscow's announcement that it will once more shut down the main pipeline, natural gas futures linked to TTF, Europe's wholesale gas price, increased by more than 10% to over €270 per megawatt hour, a new record high.
At the end of August, Russia's Gazprom announced it would stop sending gas through the Nord Stream pipeline to Germany for three days of maintenance. This announcement increased supply concerns and increased the potential of a recession if Russia's natural gas shortage grew.
Because of problems with the turbines, the state-owned energy company Gazprom has already restricted flows through the Nord Stream pipeline to about 20% of its capacity.
Additionally, a record-setting drought brought on by a dry summer that broke heat records throughout Europe threatens to stop energy exports down the Rhine while reducing the amount of hydroelectric and nuclear electricity that can be produced.
(Report by: The Decision Maker – Finance and Energy editors )