European gas prices: nobody wins

You can’t win the European gas prices race: TTF prices more than doubled since end of October, reaching a record of $45/mmbtu today.

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High gas prices will certainly translate in the short-term to some hefty profits on the balance sheets of gas producing companies, but in the longer-term there is really no winners here:

(1) high gas prices put at risk the global economy, still recovering from the covid crisis. this would have repercussions on producing economies as well;

(2) skyhigh gas prices are pushing up fertilizer prices to new records, putting at risk food supply security;

(3) the image of gas as an abundant, cheap and available energy source is certainly being damaged these days.

No one can win this race, even if TTF displays a record $6/mmbtu vs Asian spot LNG….

What is your view? How will this play out? Second round of the winter is approaching…

Source: Greg MOLNAR