Austrian company compensated, likely to "say goodbye" to Russian gas, prices in Europe skyrocket

Benchmark European gas prices jumped to their highest since November 2023 on November 14.

A station connecting to the Nord Stream 1 pipeline in Lubmin, Germany. (Source: AP)

Gas prices rose after Austrian energy company OMV warned of possible supply disruptions from Russian pipelines, as well as a sharp increase in demand for heating and electricity due to cold weather.

Natural gas futures on the Dutch TTF exchange, the benchmark gas for Europe, rose 5% early on November 15.

As of 1:50 p.m. on November 15 (local time), the price had slightly decreased but still increased by 4% during the session, reaching 47.83 USD (equivalent to 45.40 EUR) per megawatt-hour (MWh).

Earlier, on November 13, OMV said it had received an arbitration ruling from the International Chamber of Commerce (ICC) regarding unstable gas supplies from Gazprom Export, which were to end in September 2022.

The company was awarded $242 million (€230 million) in damages, plus interest and legal costs, and will take the necessary steps to enforce the judgment immediately.

OMV affirmed that it can still fully supply the contracted amount of gas to customers if Gazprom Export's gas supply activities are interrupted.

Furthermore, OMV's gas storage in Austria is now at over 90% capacity.

In addition to the risk of disruptions to gas supplies from Russia, European gas prices also rose as colder weather increased demand for heating and gas-fired power generation.

Demand for gas and electricity from this energy source has increased sharply in recent days due to the “Dunkelflaute” situation - a prolonged weak wind phenomenon in Germany, leading to low wind power output.

Source: https://baoquocte.vn/cong-ty-ao-duoc-boi-thuong-co-kha-nang-tam-biet-khi-dot-nga-gia-o-chau-au-tang-phi-ma-293867.html