Eni trading chief says gas prices unlikely to revisit 2022 highs

Eni SpA

Yesterday 11:29

MILAN, Oct 29 (Reuters) - The head of trading at Italian energy group Eni ENI.MI does not expect natural gas prices to return to the peaks reached in 2022, when Russia slashed supplies to Europe, despite the latest surge driven by the war involving Iran.
Supply disruptions in the Middle East and low gas storage levels in Europe have pushed prices higher, particularly in Europe. The benchmark Dutch TTF gas contract touched €100 ($111.47) per megawatt hour on Wednesday for the first time since December 2022.
That remains well below the peak of the 2022 energy crisis, when the TTF contract climbed above €300 per MWh after Russia's invasion of Ukraine.
"Today's situation is different ... We believe it is difficult that prices will return to the levels seen in 2022," Eni's Director Global Portfolio and Trading, Stefano Pujatti, said.
Pujatti said the current crisis affects the global gas market rather than Europe alone, with liquefied natural gas cargoes able to be redirected around the world. He also said markets expect conditions in the Middle East to stabilise eventually.
Europe's regasification capacity has also increased significantly in recent years, he added, which should help limit further price rises at the Dutch TTF hub.
($1 = 0.8971 euros)

 (Reporting by Francesca Landini. Editing by Mark Potter)
 ((francesca.landini@thomsonreuters.com; +39 02 66129437; Reuters Messaging: reutersitaly.thomsonreuters@reuters.net))