Weekly Dutch TTF gas prices 2022-2024
Dutch TTF gas futures amounted to 31.37 euros per megawatt hour on July 15, 2024 for contracts with delivery in August 2024. This was the sixth-consecutive weekly decrease. Dutch TTF is seen as a Europe-wide natural gas price benchmark. Gas prices were lower than expected throughout the winter of 2023/24 as warmer average temperatures across the continent translated into reduced heating demand and allowed suppliers to keep stockpiles high.
Europe's reliance on Russian gas imports
European gas prices surged multiple times in 2022 with all instances a reflection of concerns over lower supplies from Russia, the main source of gas imports to the continent. Russian gas dependence in Europe is particularly high among Eastern and Central European countries. Throughout 2021, Russia exported less gas than in previous years, with the objective to restock depleted storage volumes at home. This directly affected electricity prices, as gas is a major contributor to EU power production, it being the second-largest source for electricity generation. With Europe slowly climbing out of the pandemic-induced economic low, growing power demand put an additional strain on gas suppliers. Meanwhile, lower wind activity in the late summer months reduced wind power generation, which is the third-largest power source in the European Union. As a result, EU monthly wholesale electricity prices climbed significantly.
Gas production and supply in the Netherlands
The Groningen gas field is the largest gas field in Europe and the major natural gas source in the Netherlands. In 2014, the first earthquake related to drilling the field occurred, and other seismic activities were also observed. Therefore, the Groningen field has drastically reduced its production output. Since then, natural gas production in the Netherlands has been in a trend of continuous decline. To balance the diminished domestic production, the European market relies on liquefied natural gas imports and pipeline inflow.
