NATURAL GAS: Germany Expects Elevated Natgas Prices Through 2027

Germany expects high natural gas prices to continue until at least 2027, according to a report approved by the German Cabinet on 16 August.

• Natural gas prices could rise in the coming months as forward prices at the end of June indicated that there may be an increase in wholesale market prices to about €50/MWh, analysis by the economy ministry indicated.
• Expectations are normalizing and imply a return to pre-crisis levels within four years.
• The prediction of elevated prices echoes comments made by INES which said that Germany could continue to be at risk of natural gas shortages until the 2026/2027 winter season.
• INES had urged the German government to not only consider additional LNG terminals, but also further gas storage and pipeline connections to diversify supply.