Think back 12 months to when the world was beginning to emerge from the Covid lockdowns. It was a time when energy demand surged dramatically, and oil and gas producers were struggling to meet this demand. As a result energy prices soared.
Through the autumn of 2021, the European benchmark gas price – known as the Title Transfer Facility or TTF – continued to climb and it became clear something was up with Russian pipeline gas supplies.
The International Energy Agency pointed out in October 2021 that Russia could and should export more gas to Europe to demonstrate its reliability as a supplier. Gazprom, however, would only meet its contractual obligations and no more. The Russian state-owned company withdrew from the European spot market and the rise in the price of energy carried on.
