Weekly Dutch TTF gas prices 2022-2024
Dutch TTF gas futures amounted to 28.49 euros per megawatt hour on March 25, 2024 for contracts with delivery in April 2024. Dutch TTF is seen as a Europe-wide natural gas price benchmark. Gas prices have been 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.
The energy supply crisis of 2021 and 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. The jump in gas prices noted in December 2021 came as colder temperatures were sweeping the continent, while also being a reflection of the German government's decision to not approve the operation of the Nord Stream 2 pipeline.
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.