European natural gas prices bounced back on Monday, June 2, after posting their first weekly loss in four weeks on Friday, May 30, amid growing concerns over storage levels.
In the ICE market, TTF gas futures for July 2025 delivery remained relatively stable during the first week of June, hovering around €36/MWh. On June 2, prices hit their weekly low at €35.015/MWh—2.3% higher than the last session of the previous week but 6.3% lower than the prior Monday, May 26. Prices then trended upward, reaching a weekly peak of €36.393/MWh on Thursday, June 5, a 2.1% increase from the previous day and 2.8% higher than the previous Thursday, May 23. The weekly average price settled at €35.83/MWh, 1.0% below the average of Week 22.
Prices edged up on Monday as warmer temperatures eased demand, while ongoing maintenance in Norway curtailed supply. On Tuesday, prices held steady as weaker demand was offset by continued conflict in Ukraine and supply constraints from Norway and U.S. LNG shipments. The market was further pressured by heightened geopolitical tensions after Ukraine launched a large-scale drone attack deep inside Russia, diminishing hopes for a ceasefire or imminent agreement.
From mid-week onward, benchmark European gas prices rose as Norway’s annual maintenance season began. The Kollsnes gas processing plant entered scheduled maintenance in Week 23, limiting pipeline flows from Norway, Europe’s top gas supplier. Norwegian output dropped to around 10 billion cubic feet per day (Bcf/d) on June 2 from typical levels near 12 Bcf/d.
Looking ahead, the European Union plans to propose draft regulations by mid-June aimed at phasing out Russian energy imports by the end of 2027. The European Commission is expected to unveil measures on June 17 to impose a zero import quota on Russian gas, alongside plans to phase out Russian oil and restrict new contracts for uranium and other nuclear materials.
In line with diversification efforts, Germany’s state-owned company SEFE signed a 10-year deal with Azerbaijan’s Socar to supply natural gas, gradually increasing to about 1.5 billion cubic meters annually. This partnership will support infrastructure investments, including gas compressors, enhancing Europe’s energy security. Deliveries are set to begin in 2025.
Meanwhile, Russia’s Gazprom has quietly abandoned plans to develop a new gas distribution hub in Türkiye, closing off a potential route back into European markets after losing access following the Ukraine invasion. With Nord Stream pipelines to Germany offline and gas transit through Ukraine halted since December 31, 2024, Gazprom had explored Türkiye—already connected to two major Russian pipelines—as a gateway. However, after months of consideration, the project was deemed unviable and has been largely shelved.
