European Natural Gas Prices Hit Lowest Level in 18 Months

Mild Winter Weather - Impact on Securing Substitutes

[Asia Economy Reporter Yu Je-hoon] Despite the Ukraine crisis, European natural gas prices hit their lowest level in 18 months, CNN reported on the 17th (local time).

According to data from the independent commodity information service ICIS, cited by CNN, Germany's benchmark wholesale gas price fell about 5% that day, reaching 49 euros per MWh (approximately 68,000 won). This is the lowest level since September 2021.

The main reason for the significant drop in natural gas prices is attributed to the warm weather this winter. Compared to the average year, milder temperatures reduced the need for heating, thereby helping to avoid an energy shortage.

European countries securing alternatives to Russian natural gas also contributed to this. Europe has diversified its natural gas import sources, including Norway, and quickly constructed liquefied natural gas (LNG) terminals.

Henning Gloysteiner, Energy and Climate Director at the global consulting firm Eurasia Group, also evaluated that "Europe appears to have successfully freed itself from Russian gas."

[Image source=Yonhap News]

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