European gas prices have risen to their highest level since the start of 2023, and the increase is feeding through to Danish households, including those that do not heat with gas.
DR reports that the gas price has reached its highest point since early 2023, and that the rise can also hit consumers who are not gas customers. The Danish broadcaster set out the development in its report on the gas market. Gas is used both for heating and for electricity generation, which is why the effect spreads beyond gas contracts.
According to Bloomberg, the jump followed an escalation in tensions involving the United States and Iran, which raised fears of disruption to liquefied natural gas supplies. Bloomberg also noted that prices were more than 70 percent higher than at the start of July.
Trading Economics reported Dutch TTF gas trading above 70 euros per megawatt hour, the highest level since January 2023. The move was linked to concerns over Middle East supply security as Europe heads into the heating season. Market reporting from AA put one day’s rise at 4.4 percent, to 69.90 euros per megawatt hour.
The Copenhagen Post reported that gas prices had more than doubled over the past year and stood at their highest since late 2022. It pointed to the war in the Middle East and to a cold winter that left European storage relatively low.
Why prices are rising now
The immediate trigger cited across market coverage is renewed conflict in the Middle East and the risk it poses to LNG shipments. Bloomberg and AA both tie the price increase to those supply fears rather than to a change in European demand.
The timing adds to the effect. Trading Economics noted that the increase comes as Europe approaches the heating season with tighter supply. Storage levels were left lower than usual after the winter, according to the Copenhagen Post.
The International Energy Agency has previously noted that European and Asian spot gas prices climbed in March to their highest monthly average since January 2023, reflecting tighter supply fundamentals. Gas remains a price-setting fuel in parts of the European power market, which links the gas market to electricity bills.
Denmark covers part of its energy needs from other sources, including wind power and biogas. Gas still plays a role in heating and in power generation during periods of low wind, as DR notes in its reporting on the price increase.
