Sarah Mitchell2 said:Fair enough, but they're only selling gas to the EU. Which specific year does that 66 billion figure cover? What was the total back in 2021 versus what we're looking at for 2022? If it ends up being more than 172 billion, then those sanctions didn't actually do squat.
If it were up to me—even though I rely on gas for heat—I'd say shut it all down immediately. Prices are going up regardless.
So why the hell is gas getting more expensive then?
Who exactly is seeing the price hikes?
Companies over in Germany have been buying up gas just to flip it for a profit. For them, maximizing that spread between buy and sell prices is the name of the game for their shareholders.
Essentially, these corporations act like speculators. They structure contracts to cover maybe 70-80% of their needs, then scramble to buy the rest on the spot market if things get dicey. The absolute worst-case scenario is when they overcommit via contract, buying more than 100% of what they can actually move. Then they're stuck with a massive surplus, leading to fire sales where they're selling below cost—sometimes even hitting negative prices.
I've spent a lot of time watching the electricity markets. You'll see them offering 1,000 MWh of power between midnight and 6 AM, and they'll practically throw in €60,000 just to take it. Then suddenly, from 6 to 9 AM, the price jumps straight to €70 per MWh.
Back then, huge amounts of energy—around 4,000 to 5,000 MWh constantly—were flowing through the US transit routes toward Italy. If we had possessed reversible capacity of about 1,000 to 2,000 MWh, we could have been pulling in free electricity overnight to use during the day. Right now, prices are a bit 😁higher
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