Gas pact and pipeline drop: Europe's 1 October 2021

What happened to European gas on 1 October 2021? Russian supplies via the Yamal–Europe pipeline fell almost 77% in a single day, and European gas prices rose to an all-time high.

The drop came days after a deal between Hungary and Russia. On 27 September 2021, the two countries signed an agreement under which Gazprom would supply Hungary with 4.5 billion cubic metres of gas a year via Serbia and Austria for 15 years. Ukraine criticised the pact, calling it a purely political, economically unreasonable decision. Hungarian Foreign Minister Péter Szijjártó responded by accusing Ukraine of meddling in Hungary's internal affairs.

Questions over the price spike

On 1 October, European Parliament lawmakers requested investigations of market manipulation. The picture was mixed, however. Gazprom's exports outside the former Soviet Union had risen 15.3% year on year in the first nine months of 2021. German utility Uniper confirmed that Russia was fulfilling its contractual obligations.

So, on 1 October 2021, a record price, a steep fall in one pipeline's flows and calls for inquiries sat alongside figures showing higher exports and confirmation that contracts were being honoured.