Fears of Winter Gas Supply Crunch Ease in Europe
- Gas’s future seen at risk should transit negotiations fail
- Ukraine motivated to win deal to retain value in pipelines
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The risk of a major surge in European natural gas prices this winter is waning thanks to plentiful supplies from storage and ocean-going vessels, while Russia is motivated to prevent an interruption of flows via its biggest supply route.
Natural gas for January in the Netherlands, Europe’s biggest market, has dropped more than 20% in the past six months. That comes despite the risk that Russia, the region’s biggest supplier, will fail to agree a transit accord with Ukraine and European Union intermediaries before the current deal expires at the end of the year.