Reference prices for natural gas in Europe and Asia have risen close to record levels, with the worst energy crisis in decades intensifying competition to secure supplies, DPA and Bloomberg report.

On Thursday morning, at the TTF hub in Amsterdam, where reference prices for natural gas in Europe are set, quotations rose by more than 6% to almost 316 euros for a Megawatt hour (MWh), after Wednesday, when they posted an advance of 13%. In the spring, at the TTF hub in Amsterdam, quotations reached a record level of almost 335 euros for one Megawatt hour (MWh).

Asian liquefied natural gas (LNG) futures jumped 18% to near a record high.

In recent weeks, the market has tightened further as extremely hot and dry weather has disrupted fuel transport on rivers and limited hydro and nuclear power production. As a result, the demand for gas is increasing, at a time when deliveries from Russia are decreasing, according to Agerpres.

In Europe, gas prices are more than ten times higher than the average for this time of year, destabilizing economies, undermining the euro and increasing pressure on politicians to mitigate the impact of high inflation. Supply disruptions intensified this week, increasing competition with Asia to secure supplies.

Russian gas supply remains at a low level, and lower flows from Norway are expected in September, due to maintenance work.

“Europe simply does not have access to alternative supplies to compensate for the decline in Russian gas supplies. Liquefied natural gas has helped to fill European gas deposits,” said Samantha Dart, director at Goldman Sachs Group Inc.

In the past year, the high price has already forced the closure of about half of the zinc and aluminum smelters in Europe, but more are preparing to close.