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30 Sep, 2022 09:36

European gas prices soar on Russian pipeline news

The export license of the TurkStream operator has been revoked by Dutch authorities due to EU sanctions
European gas prices soar on Russian pipeline news

Natural gas prices in Europe rocketed more than 10% on Friday, to $2,100 per thousand cubic meters, following news that the operator of the TurkStream pipeline had lost its license because of the latest EU sanctions on Russia.

November gas futures at the TTF hub in the Netherlands were trading at $2,087 per thousand cubic meters, or €205.995 per megawatt hour.

Prices have seen upward pressure due to uncertainty over supply after the Russian-owned operator of the TurkStream pipeline, South Stream Transport, said on Thursday that the Netherlands had withdrawn its export license.

Media reports claim that if the TurkStream natural gas route is damaged, the operator won’t be able to mount repairs because of the sanctions. However, South Stream Transport stated it will continue gas transportation, adding it had already requested the resumption of the license.

The TurkStream pipeline, which has an annual capacity of 33 billion cubic meters of gas, supplies Russian fuel to Türkiye and Southern Europe. Launched in 2020, it has carried some 18 billion cubic meters (bcm) of gas to Türkiye and 16.8 bcm to European customers, according to Daily Sabah.

Following the sabotage of the two Nord Stream pipelines, TurkStream remains the only conduit for Russian natural gas to the EU besides the pipelines that pass through Ukraine.

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