On Friday, front-month European nat gas (Dutch TTF) briefly soared to a record 100 euros before retreating, at the as China stepped up a global fight for energy supplies, ordering top energy companies to secure energy supplies “at all costs” in a move that threatens to push prices to unprecedented levels, and comes just as flows into Germany via a key Russian pipeline tumbled.
As Bloomberg energy commentator Javier Blas puts it, “European gas prices are (and had been for several weeks already) in full demand-destruction mode. The market is trying to force industrial consumption off to preserve gas for the rest of the (largely price inelastic) economy.” Translation: millions of people will end up without heating during the winter
Meanwhile, reminding Europe once again who is in charge at least of winter heating, flows from Europe’s top supplier Russia into Germany’s Mallnow via the key Yamal-Europe pipeline plunged by 77% from Thursday, just as the heating season begins. At an auction on Thursday, no extra pipeline capacity was booked to deliver fuel to the Mallnow compressor station the following day.nationandstate European Gas Hits A Record 100 Euros As Russian Gas Flows Collapse By 77%