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Europe gas crisis: Prices soar after pipeline ‘sabotage’

By Angela Barnes

14:21, 29 September 2022

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383.48 USD
-1.77 -0.480%
Natural Gas
Natural Gas
6.212 USD
-0.611 -8.960%

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Danish Defense shows the gas leaking at Nord Stream 2 seen from the Danish F-16 interceptor on Bornholm, Denmark
Russia threatens sanctions that could deepen the Europe gas crisis as prices spike following pipeline leaks – Photo: Getty

Front-month gas futures on the Dutch TTF extended gains and jumped more than 10% to around €210 per megawatt hour (MWh) on Wednesday and have since hovered around the €200 mark as traders monitor fresh Russia supply challenges.

Meanwhile, in the US, natural gas prices also remained volatile as Hurricane Ian made landfall in Florida, curbing demand but raising the likelihood of production disruptions. 

US natural gas price chart

The October Nymex gas futures contract gained 3% and settled at $6.868 per million British Thermal Units (MMBtu) on Wednesday.

The US gas market has also felt the pressure from Europe this year, supplying record amounts of liquified natural gas (LNG) to the bloc as it shifted away from Russian commodities.

Now the situation has been further exacerbated after Russian energy giant Gazprom (SIBNru) warned its Ukrainian counterpart Naftogaz that new payment disputes might lead to Russian sanctions against it.

This could lead to Moscow stopping the remaining flows of gas to Europe via Ukraine.


It comes just hours after news about damage to the Nord Stream 1 and 2 gas pipelines in the Baltic Sea, which runs from Russia to Germany. Four leaks have been reported in what is suspected sabotage. The Kremlin has denied any involvement.


1,798.06 Price
-0.280% 1D Chg, %
Long position overnight fee -0.0188%
Short position overnight fee 0.0073%
Overnight fee time 22:00 (UTC)
Spread 0.33

Oil - Crude

80.34 Price
-1.310% 1D Chg, %
Long position overnight fee -0.0024%
Short position overnight fee -0.0116%
Overnight fee time 22:00 (UTC)
Spread 0.03


23.18 Price
+1.770% 1D Chg, %
Long position overnight fee -0.0182%
Short position overnight fee 0.0065%
Overnight fee time 22:00 (UTC)
Spread 0.040

Natural Gas

6.21 Price
-8.960% 1D Chg, %
Long position overnight fee 0.0408%
Short position overnight fee -0.0658%
Overnight fee time 22:00 (UTC)
Spread 0.005

However, the Nord Stream 2 pipeline has never opened and Nord Stream 1 has been shut indefinitely for repairs since the start of September – so the impact on supplies to Europe has not changed, as it stands.

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Natural gas price outlook

Daniela Hathorn, market analyst at, said it doesn't really come as a surprise that we are seeing gas prices picking up once again after their short respite. 

“Tensions between Russia and the West have been escalating over the past few weeks as Putin has accused Europe and the US of nuclear blackmail, saying he was ready to mobilise troops to defend his country.

“Despite Russia claiming no foul-play in its reduction in gas supply to Europe over the last 4 months, there has always been a sense of sabotage despite their claims of maintenance checks and pipe leaks. Regardless of the nature of these shortages, there is likely going to be further disruption in gas supplies as tensions continue to escalate, especially now that the threat of nuclear weapons has been made. In fact, we have already seen Russia use the supply of gas as leverage, as Gazprom has refused to use alternative transit routes for gas into Europe via Ukraine despite being able to do so at no extra cost,” she said.

Hathorn said that this is going to have a knock-on effect on gas prices, despite the US claiming to have enough domestic production to meet demand. 

“Germany has also claimed to have reached almost 90% of storage capacity, which would make the winter months slightly more bearable, but the market remains extremely volatile and a continuation of supply shortages or even a complete blackout would keep prices highly elevated over the coming weeks,” she added.

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