By our economics editors
01 Nov 2023 at 12:20
The European price of gas is falling now that concerns are subsiding about the supply from the Middle East. The consequences of the loss of gas from Israel appear not to be too bad for Europe.
On the Amsterdam gas exchange, the price for deliveries in November fell by almost 3 percent on Wednesday morning to 46.69 euros per megawatt hour. On Tuesday, fuel became more than 9 percent cheaper.
However, the gas price is still above the level before Hamas’s attack on Israel on October 7. In the week after that attack, gas prices even reached their highest level since February.
This was because Israel will no longer supply gas to Egypt for the time being as a result of the conflict with Hamas. In that country, Israeli gas is converted into liquefied natural gas (LNG), intended for the European and Turkish markets.
95 percent of gas comes from elsewhere
According to expert Hans van Cleef from energy consultancy Public Affairs, Egyptian LNG exports to both markets account for 5 percent of the total European and Turkish supply.
If the conflict continues, Israeli gas production will remain low, according to Van Cleef, meaning there is a good chance that no LNG will flow from Egypt to Europe this winter. However, according to the energy expert, the impact for Europe appears to be limited for the time being.
Europe is entering winter with full gas reserves, which have not yet been used thanks to the predominantly mild autumn weather.
Beeld: picture alliance
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EconomyIsraeli-Palestinian conflictGas price
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