Europe Gas Tops 100 Euros, Squeezing KEPCO
Dutch gas futures closed above 100 euros per MWh for the first time since December 2022 as LNG shipments remain disrupted.
Updated on Nov. 2, 2026 in Oil and Gas
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European natural gas prices rose above 100 euros per MWh for the first time since December 2022, with Dutch TTF futures closing at 103.94 euros on October 30. Competition between Europe and Asia for limited LNG supplies, compounded by disruptions to shipments through the Strait of Hormuz, is driving the increase.
Why it matters
Higher LNG and coal costs are pushing up fuel expenses for power generators in South Korea, where KEPCO's finances are already strained and its electricity rates are frozen. The increase raises the risk of further financial pressure on the utility heading into winter.
KEPCO's debt reached 210.7 trillion Korean won in the first half of 2026, with daily interest payments of about 11.5 billion won. Its procurement costs rose 17.6% year-on-year in August while average sales prices fell 1.2%, and the source does not say how much of the coming fuel increase will be absorbed by the utility.
The players
Korea Electric Power Corporation (KEPCO)
South Korea's state-run electric utility, which buys fuel and supplies most of the country's electricity and is facing mounting debt and rising fuel costs.
The details
Gas shipments through the Strait of Hormuz have been repeatedly disrupted by the Middle East war, forcing European and Asian buyers to compete for scarce LNG ahead of winter. Australian thermal coal also rose about 30% from pre-war levels to $150.45 per ton on October 30.
Timeline
2022: KEPCO recorded a near 33 trillion won deficit during the Russia-Ukraine war.
April: The government lowered daytime rates for large businesses.
August: KEPCO's procurement costs rose 17.6% year-on-year.
October 30: Dutch TTF gas closed above 100 euros per MWh.
2026 to 2030: KEPCO plans to invest 55.3 trillion won in power grid expansion.
Historical Parallel
KEPCO's 2022 record deficit of nearly 33 trillion won came during the Russia-Ukraine war, when gas prices spiked and the utility absorbed losses under frozen rates. The current climb above 100 euros per MWh, the first time since December 2022, suggests the same financial squeeze is returning.
Higher fuel costs for power generators could eventually feed into electricity bills, though the source does not confirm any change to South Korean household rates. The utility's rate freeze and rising debt leave the timing of any adjustment unclear.
The takeaway
Energy price shocks tied to shipping disruptions can quickly reach household costs through utilities with frozen rates. Readers tracking energy bills should watch for any change to KEPCO's rate policy in the coming months.
Further reading
For broader context on gas supply pressures, explore our Oil and Gas coverage.
Source note: This article includes information reported by 조선일보.
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