nAfter a complete halt to Russian deliveries via the Nord Stream pipeline, futures contracts for European standard gas rose as much as 35 percent on Monday morning.
„Given the tight gas supply, the possibility of mandatory gas restrictions for non-essential industries or even a 'turn off of circulating gas’ depending on the weather this winter cannot be ruled out,” said an analysis by JPMorgan. annoying Goldman Sachs Group Inc. European gas prices may be closer to their August highs after the Russian move.
On Friday, the European Union will discuss measures to curb high energy prices amid a complete disruption to Russian gas supplies via the Nord Stream pipeline. According to a draft document available to Bloomberg, this should include caps on natural gas prices and a suspension of electricity derivatives trading.
Germany plans to offer a €65 billion relief package to families and businesses. It is also planned to cap the revenues for electricity producers who do not depend on gas, which is currently very expensive, to produce electricity. Sweden and Finland launched support measures for utilities over the weekend to avoid a Lehman Brothers moment in the sector.
The Dutch gas futures contract for delivery next month is listed 26 per cent higher at €270 per megawatt-hour. In the past week, listings are down 37 percent.
Now Iran wants to deliver gas to Europe
Meanwhile, Iran has presented itself as an energy supplier. „As it is known, we have the necessary gas reserves and capabilities and therefore we can also cover Europe’s needs in this regard,” Foreign Ministry spokesman Nasser Kanaani said on Monday. Fars news agency quoted the spokesman as saying that in the run-up to the nuclear agreement in Vienna, it should be reinstated and, above all, all US economic sanctions against Iran should be lifted.
With the world’s second largest gas reserves, Iran could become an energy supplier to Europe, but observers say it has little scope for gas exports due to domestic gas demand. Al-Kanaani’s spokesman also admitted that there had been technical problems in gas production in recent years due to US sanctions. In the meantime, these issues have been addressed and Iran no longer has any restrictions.
Iran and the six signatories to the Vienna nuclear agreement – China, Germany, France, Great Britain, Russia and the United States – are currently working to revive the 2015 agreement. A final agreement has yet to be reached, but the Iranian spokesman expressed confidence that it will be possible soon.
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