EUROPEAN NATURAL GAS PRICES - CALM BEFORE THE STORM?

摘要

The fall in natural gas prices in Europe has been a feature of the energy market during 2014. Spot prices averaged $10.51/mmBtu at the TTF Dutch hub for 2013, while for the year-to-date they have averaged $8.71/mmBtu. The decrease has been all the more surprising given the situation between Russia and Ukraine. Russia supplies around 30% of Europe's gas, of which around 16% is transmitted across Ukraine, according to figures from the EIA. In June 2014, Gazprom moved Ukraine's state-owned gas company Naftogaz to a pre-pay contract. The two sides had failed to reach agreement on Naftogaz's outstanding bill, which Gazprom said was US$4,458 million. This included US$1,451 for November and December 2013, and US$3,007 for April and May 2014. Gazprom had set a deadline of 16 June 10:00 am Moscow time for a payment of US$1.95 billion, or it would move Naftogaz to a prepay contract.