Natural gas prices in the UK and Europe are expected to return to historical highs in the future Germany Due to increased tensions on the Ukrainian border, a disputed pipeline from Russia could not be approved.
German Foreign Minister Annalena Baerbock stated that the current North Stream 2 pipeline cannot be approved because it does not meet the requirements of the EU energy law.
Balbok added that tensions on the border between Russia and Ukraine are escalating. According to reports, the Kremlin has assembled 100,000 soldiers, It is also “a factor” because Berlin has agreed with the United States that the pipeline should not be used as a political weapon for the deterioration of relations between Moscow and Kiev.
In response, the benchmark natural gas price in Europe rose by about 10% on Monday, reaching a high of 116.75 euros (142.56 pounds) per megawatt hour (MWh), slightly lower than the record closing price of 116.78 euros/MWh in early October. Market price data from ICIS.
According to ICIS data, the UK natural gas market price climbed to 296.35 Pavin on Monday, slightly lower than the record closing price of 298.475 pence on October 5.
Due to the tight global natural gas supply, natural gas prices in Europe have hit record highs in recent months. The slowdown in Russia’s natural gas exports to the African continent has exacerbated the situation due to the deadlock in the negotiations on Beixi 2.
Baerbock rejected the pipeline after a decision was made last month Suspension of the licensing process Because the ownership structure of the project does not comply with the EU’s natural gas directive.
Tom Marzec-Manser, head of natural gas analysis at ICIS, said that some energy traders are hopeful that the pipeline will be able to deliver some natural gas this winter, and react to signs of further delays, pushing prices back to record levels. High Point.
Kremlin spokesperson Dmitry Peskov told Russian news agency Interfax that the Nord Stream 2 development company “is cooperating with regulators and meeting all its requirements. We just need a little more patience.”
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Fearing that Russia might use this pipeline as a political weapon, Germany is facing pressure from the United States to block the Beixi 2 project.The pipeline extends from Russia to Germany under the Baltic Sea, bypassing UkraineAccording to critics of the Kremlin, this may make it easier for Russia to increase its military aggression against Ukraine without worrying about its natural gas exports being disrupted.
U.S. and EU leaders Worried about Russia’s imminent attack on UkraineCrimea was annexed in 2014. Kiev estimates that there are currently about 100,000 Russian troops deployed on the border between Russia and Ukraine.
A record high in the UK gas market in October raises concerns The factory needs to close this winter To prevent the financial blow of soaring costs.Soaring prices may also affect it Britain’s troubled energy supply market After 24 suppliers closed in a little over 12 weeks and household energy bills rose record-breaking.
According to reports, the European Commission has proposed a voluntary system for EU countries to jointly purchase natural gas to form a strategic reserve to prevent a surge in global demand and a decline in Russian exports from leading to tight supply.
