Gas prices in Europe spiked on Wednesday, as continental and British reference gas set new records amid rising demand with the approach of winter, especially in Asia, and the limited supply and low stocks around the world.

The Dutch “Title Transfer Facility”, the European reference marker, recorded around 09:15 GMT an increase of 25.14% up to 145.19 euros per megawatt-hour.

Simultaneously, the British gas prices for delivery next month increased by 25.13% to 367.78 pence per megawatt-hour thermal unit.

In previous trades, the two markets recorded a record high of 162.10 euros and 407.82 pence.

“It is panic and fear as winter approaches,” Commerzbank analyst Carsten Fritsch told AFP.

The rise in gas prices, in addition to record oil prices this week, raised global concerns about rising inflation.

Gas demand rises in Asia 

Gas demand is also rising in Asia, especially from China.

“Natural gas prices rose to new record levels… because the amount of insufficient stocks ahead of the winter season raises fears of rising inflation and energy prices on the consumer,” said Walid Kodmani, an analyst at XTP.

“These supply constraints could translate into the higher cost of transporting fuel during the winter months, a possibility that would further slow the economic recovery and exacerbate a depressing market mood,” he added.

The lack of wind for turbine plants, as well as the progressive closure of coal mines in the face of climate-friendly government policies, are exacerbating Europe's energy dilemma.

It is worth noting in this context that Britain is currently vulnerable to an energy crisis due to its reliance on natural gas for the generation of electricity.