Gas market situation tightens

The first session after the weekend break is not a good one for Europe. Stock market indices are down, and there is even more going on in the energy market, where demand and supply are reacting to new information. The Kremlin has stated that Russia will halt gas supplies until economic sanctions are removed, which pushed up TTF gas prices by more than 20% today. The situation is escalating, and despite the replenishment of some stocks, the current suspension of supplies may prevent sufficient gas from being secured for the winter.

Uniper (UN01.DE) has signed an agreement with Woodside to supply LNG to Europe starting in 2023 and lasting until 2029. The terms of the agreement call for 1 bcm of gas delivered to the EU annually. 

Uniper's CEO said that gas rationing in Germany cannot be ruled out. 

Source: Reuters