European gas prices have risen steeply as gas flow to Europe on the Nord Stream 1 pipeline was cut to 20% of normal capacity.

Russia’s actions risk energy shortages in Europe in the coming winter impacting households, public services and manufacturing such as nitrogen production.

European benchmark gas prices reached a high of €227 per megawatt hour on Wednesday, almost 30% higher than closing on Monday. The development gives rise to fresh concerns over nitrogen availability ahead of the new season.

Nitrogen shortages

Yara’s CEO last week noted the risk of nitrogen shortages and further price spikes if the natural gas situation in Europe deteriorates further which it has done.