Gas prices could go up by 30%

 In Energy, News, Oil and Gas

Portuguese companies are concerned after warnings that the price of gas could go up by as much as 30%.

The price of gas had already gone up by 18% in the last quarter of 2024 to an average of €44 per megawatt/hour but the International Energy Agency forecasts that prices could soar by a further 30% this year, placing intolerable costs on Portugal’s manufacturing industry and household bills.

In January alone, the value of contracts in the Dutch futures market TTF shot up to €51 per MWh (the highest price since November, 2023).

On the Iberian peninsula Mibgás is looking at gas prices for Portugal and Spain at just over €50 per MWh.

In Portugal, companies are aware of increases in the price of gas on the markets and have asked the Portuguese government for measures to put the brakes on energy costs.

José Eduardo Carvalho, president of the Portuguese Industrial Association AIP said: “Obviously there will be an impact on energy costs, particularly on companies that are outside the supplier of last recourse and are still very exposed to natural gas consumption”.

“The increase may also be felt on the costs of electricity, depending on the availability of renewable sources throughout the year.”

And added, “any increase in the price of gas will be felt in all European economies since most of them are more exposed to natural gas than Portugal’s whose competitiveness will not be affected.”