Gas prices continue to burden European industry

Almost a year-and-a-half after Russia invaded Ukraine, elevated gas prices continue to impact the competitiveness of European industry, especially relative to the US

European gas prices spiked last year, as the continent attempted to replace Russian pipeline volumes with LNG shipments following Russia’s invasion of Ukraine. Gas prices climbed from around €70/MWh (equivalent to $22.4/mBtu) to top €330/MWh ($106/mBtu) in August last year, before falling again to hover at just above €30/MWh ($9.60/mBtu) recently. Henry Hub gas prices, on the other hand, rose from around $4.50/mBtu before the war to reach $9/mBtu in August 2022, and retreated to approximately $2.50/mBtu in July 2023. But even after prices have eased, European gas consumers—in particular industrial users—remain disadvantaged. Gas prices are a critical factor in the competitiveness of many ind