Natural gas spot costs in Europe continue to rise with September futures on the TTF hub in the Netherlands jumping to nearly $3, 500 per thousand cubic meters on Friday, based on data on the London ICE exchange.
Prices have reached their top level since March.
The price rally began last week, after Russian energy giant Gazprom said the only real operational turbine on the Nord Stream 1 pipeline will be shut down for maintenance works from August 31. Fuel transit through the route is going to be entirely suspended until Sept 2 .
In the meantime, European countries are trying to fill fuel storage facilities ahead of the heating system season. The unscheduled maintenance work exacerbates both the danger of a recession and a wintertime energy shortage across the region.
Since past due July, the Nord Flow 1 gas pipeline continues to be used at 20% of its full capacity due to the shutdown of several gas turbines. One of them was sent to Montreal for repairs and got stuck there due to Canadian sanctions against Russia over the conflict in Ukraine.
At Germany’s ask for, Ottawa announced an permission for the turbines in July, and sent one of them more than, but Gazprom declined shipping, citing irregularities in documentation.