European gas prices soar to record high as Russia awaits EU approval for delivery of supplies via Nord Stream 2 pipeline

Gas prices in Europe have topped a new record high, soaring over $1,200 per 1,000 cubic meters on Monday as the global energy crisis worsens due to growing post-pandemic demand.

The cost of November futures on the TTF hub in the Netherlands reached above $1,200, or about €100 per megawatt-hour, according to the Intercontinental Exchange (ICE) data.

Last week, gas prices exceeded the $1,000 level for the first time in history, and then surged to more than $1,100.

European prices for gas are projected to surge higher, as buoyant demand driven by the reopening of EU economies after lockdowns exceeds supply that has been limited since Europe is not the only region reopening after Covid-related isolation.

Moreover, strong demand for the blue fuel in Europe is attributed to the approaching winter season that is expected to be particularly cold, while underground storage facilities across the continent are underfilled.

While increasing demand from households and businesses has coincided with pandemic-related underinvestment in global drilling, Brussels continues to delay the launch of gas supplies from Russia via the newly constructed Nord Stream 2 pipeline. The EU certification process is expected to drag on into next year.

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