Europe’s energy market appears all the more likely to remain stuck in an extended energy crisis of new record levels for natural gas prices, and, by extension, electricity prices, analysts are projecting

Yesterday, gas prices at the Dutch TTF exchange neared a six-month high, rising by over 48 euros in a day as a response to an upcoming three-day disruption of operations at Nord Stream I at the end of the month for maintenance work.

European officials fear an extended disruption of Nord Stream I, beyond the scheduled three-day period.

Gas futures contracts for September yesterday reached as high as 293 euros per MWh, the highest level since March 8.

The energy situation in the European Union in the coming autumn and winter is going to be extremely difficult, the SEB bank noted in a report.

Yesterday, investment bank Citigroup warned that the inflation rate in the UK may reach 19 percent in early 2023 as a result of skyrocketing gas prices, projected to rise almost fivefold compared to the beginning of this year.

Europe will need to compete with major Asian LNG importers such as China, Japan and South Korea to secure required LNG loads, not subject to long-term supply agreements.

LNG prices in Asia have exceeded 57 dollars per million BTU, some loads offered for nearly 60 dollars per million BTU.