European natural gas benchmark prices rose 22% in September compared to August, reaching 74.87 euros per megawatt-hour (MWh), according to a report published by Diena. The increase was driven by lower regional storage levels, maintenance issues at Norwegian gas fields, and ongoing uncertainty surrounding liquefied natural gas supplies from the Middle East.
European gas prices climb amid storage deficits and Norwegian disruptions
European natural gas inventories remained significantly lower than in previous years as the heating season approached. During the first weeks of September, prices continued to climb due to this storage gap. Additional upward pressure came from reduced Norwegian gas deliveries caused by maintenance and technical disruptions at the Troll field, which periodically cut exports by more than 50 miljoniem kubikmetru dienā.
QatarEnergy force majeure pushes TTF contract prices to record levels
Price increases accelerated in the middle of the month, with the Title Transfer Facility (TTF) contract price hitting 84.5 euros per MWh—the highest level recorded since December 2022. Diena reported that this surge followed a decision by QatarEnergy, the state-owned energy company and a major global liquefied natural gas exporter, to extend its force majeure regime concerning deliveries to Europe. The state-owned enterprise noted that repair work on damaged production facilities at the Ras Laffan complex, which has a total capacity of 17,4 miljardiem kubikmetru gadā, could last up to three years, restricting export availability.
Diplomatic optimism and increased imports lower gas prices
Prices decreased gradually during the second half of September. This shift followed growing optimism regarding potential diplomatic progress between the United States and Iran, alongside an increase in liquefied natural gas deliveries to Europe. European imports of liquefied natural gas reached a four-month high in September as flows through the Strait of Hormuz rose and competition for cargo shipments from Asia eased. By the end of the month, however, the European Union’s gas storage fill level stood at only 71%. That figure was approximately 11 percentage points lower than the level recorded one year prior, leaving the market sensitive to potential supply disruptions and colder weather during the heating season.
Frequently Asked Questions About European Gas Prices
What was the peak price for European natural gas in September?
The TTF natural gas contract price reached 84.5 euros per MWh in the middle of September, marking the highest level recorded since December 2022.
Why did QatarEnergy extend its force majeure regime?
The state-owned exporter extended the emergency status due to damaged production facilities at the Ras Laffan complex, where repairs are expected to take up to three years.
What was the fill level of European Union gas storage at the end of September?
EU gas storage facilities were filled to 71% capacity at the end of the month, remaining about 11 percentage points below the level recorded one year prior.
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