Natural gas prices rise in Europe as Russia lowers supply

The price of natural gas per megawatt-hour in Europe increased 5.87% on Monday, with Europe seeking alternative sources to balance less natural gas volumes from Russia.

Natural gas price per megawatt-hour for July contracts in Europe, trading on the Netherlands-based virtual natural gas trading point (TTF), rose to €124.66 ($131.18) at 03.35 p.m. local time (1235 GMT) from €117.73 ($123.88) at Friday's closing.

Russian energy giant Gazprom reported that gas supply through the Nord Stream pipeline could fall to 67 million cubic meters per day as of June 16, down from its usual level of 167 million cubic meters.

As Russia lowers the quantity of gas delivered to the EU, some countries are turning to coal in a bid to generate sufficient electricity to meet their needs.

Germany announced its intention on Sunday to prioritize coal power plants and place more natural gas in storage to reduce gas consumption. Meanwhile, Austria's government agreed with utility Verbund to convert a currently out-of-commission gas heating power plant to produce electricity from coal./aa

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