Severe Frosts May Send European Gas Prices Soaring Above €100

Analysts warn that severe frosts could push gas prices above €100 per megawatt-hour (MWh) in Czechia, according to comments from investment directors at Arete Energy and XTB. Current short-term European gas prices are around €80 per MWh.

Prolonged and severe frosts combined with further constraints on global LNG supplies could send prices sharply higher, said Jiří Tyleček, an analyst at XTB. 'Prolonged frosts combined with another LNG supply disruption could send prices sharply higher,' he noted.

Greenbuddies chief analyst Tomáš Krejčí also warned that gas prices will not fall any time soon, even if tensions in the Middle East ease. He said a possible deal with Iran would not provide a quick solution and predicted that prices could spike if frosts coincide with further constraints on global LNG supplies.

The analysts agree that there is no risk of a gas shortage, but rather a problem of price. Martin Pacovský, investment director at Arete Energy, said 'there isn't enough gas in Europe for us to ignore a severe winter.' He predicted that prices could range from €100 to €130 per MWh if frosts are prolonged and cold.