Europe has to deal with a grueling challenge. In early January, gas prices in the EU are still skyrocketing. Natural gas prices in the EU remain elevated, standing at $500 per 1,000 cubic meters, which is 50% higher than in January 2024. By mid-year, they are expected to rise further to $540 per 1,000 cubic meters!

In the first days of January 2025, gas prices fluctuated between $480 and $540 per 1,000 cubic meters. Since January 9, prices at the TTF hub in the Netherlands have ranged between $468 and $485 per 1,000 cubic meters. For context, in January 2024, natural gas prices did not exceed $344–$362 per 1,000 cubic meters.

According to analysts, the rise in gas prices in Europe is due to several factors: cold weather, increased withdrawal of LNG from underground storage, and reduced transit of Russian gas through Ukraine starting from January 1, 2025. Additional pressure comes from a decline in wind power generation. Data from Gas Infrastructure Europe shows that as of January 7, 2025, gas storage levels were estimated at 68.8%, compared to 84.1% a year earlier.

Analysts warn of a further rally in natural gas prices this year. By mid-year, gas prices in the EU could surge to $540 per 1,000 cubic meters. As for year-end forecasts, LNG prices are expected to range from $420 to $480 per 1,000 cubic meters.