The third quarter of 2020 is another dynamic period on the European natural gas market. Spot prices during this period are going mainly upwards, shows the data. The price of TTF for the day ahead increased from 5.66 euros per MWh at the beginning of the quarter to 12.26 euros to MWh at the end. According to analysts, spot prices are at the same levels as in December 2019. The main reason for the high spot prices is the increased demand from the industry and households, but also in the energy sector, where natural gas replaces coal.
The sharp decline in LNG imports in the third quarter was a result of hurricane season in the Gulf region, which also influenced the natural gas prices in Europe.
At first glance, the rise in prices seems paradoxical, as the first economic closures in March led to a price collapses not only in gas, but also in oil and electricity. In reality, however, the restrictions are now much less strict and. In addition, China and almost all of Southeast Asia are not experiencing severe coronavirus problems and even report an increase in fuel consumption compared to the same period in 2019.
As far as Bulgaria is concerned, the price of natural gas is already following the movements of the European gas exchanges much more closely and it can be assumed with great certainty that from January 1, 2021 there will be an increase of about 10% compared to current prices.