Natural gas prices on European markets have risen to their highest level since the end of 2022. The price surge is the result of complex geopolitical and market conditions, with the escalation of conflict in the Middle East playing a key role. Its consequences are directly reflected in energy supplies, creating additional pressure on a market already facing instability.
At the key European gas exchange TTF, prices have recorded significant growth. Gas for delivery in October costs 78.77 euros per megawatt, representing a 3.9 per cent increase compared to the previous day. This price rise is a direct consequence of increasing uncertainty in supply chains, particularly concerns regarding the security of passage through the Hormuz Strait. Before the outbreak of conflict, approximately one fifth of global shipments of liquefied natural gas (LNG) passed through this corridor, making it a critical point in global energy.
On the other hand, LNG exports from the region have seen a dramatic drop of more than 85 per cent compared to the same period last year. This restructuring of the market further complicates the situation, especially as demand for energy is rising. This demand, driven by high heat, affects the global market as a portion of LNG, instead of being directed to European storage, is diverted to the Asian market where temperatures are also extreme.
Despite these challenges, the current level of supply in European storage remains relatively stable. Gas storage in the European Union is filled to 67.12 per cent, indicating that European reserves still have a certain level of security. In Croatia, the situation is similar, with storage filled to 77.20 per cent, which is significantly higher than the European average. The European Commission, taking these figures into account, states that the supply of gas during the coming winter is not at risk, although market pressures and geopolitical tensions remain a significant risk factor.
