August 29, 2022

Gas prices in the Netherlands increased once again to a record-breaking €600 per megawatt hour, up from €34 two years ago. The FD attributes the problem to the conflict in Ukraine and a decrease in Russian gas imports. This week, the Nordstream 1 pipeline will be shut down for repair by the state-owned Russian supplier Gazprom, significantly reducing availability. Experts believe Moscow is trying to penalize Germany for helping Ukraine by operating the pipeline, which supplies more than 40% of the gas to the EU, at a reduced capacity for months.

Agro Energy, an energy company, is pessimistic about the future. In a recent analysis, the business stated that “fears of gas shortages in the winter could also push prices up further.” The problem is exacerbated by the high cost of coal right now. Due to low water levels in Germany, barges cannot deliver coal to the ports of Rotterdam and Antwerp. In the previous two weeks, the cost of a ton of coal has jumped fourfold. These “unpredictable trends,” according to Agro Energy, make it challenging to estimate energy prices.

According to information released this week by the Ministry of Economic Affairs and Climate, the nation is on track to reach its goal of filling its gas reserves to 80% of capacity by November 1. However, increased costs can prevent them from reaching this objective. Due to the high cost of gas, wholesaler GasTerra no longer stores it at the Norg plant in Drenthe. The business requests further government assistance.

Source: DutchNews.nl
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