In contrast to the electricity market, the natural gas market in March was more volatile, reacting to global developments. What were the key factors influencing natural gas prices in Latvia?

The average natural gas exchange price in February, which set the price for the entire month of March, was 31,96 EUR/MWh. During this period, the impact of the U.S.–Iran conflict had not yet been felt, and no sharp price fluctuations were observed in the market.

Despite the tense situation in the natural gas market during March and April, the injection season at the Inčukalns Underground Gas Storage facility has begun. By the end of March, the storage level remained at a secure level, reaching approximately 6 TWh. The facility will need to be gradually refilled ahead of the next heating season.

At the end of March, when setting the natural gas price for April, it approached the level of around 52 EUR/MWh. However, the situation is expected to improve in April due to warmer weather conditions, provided that tensions in the Middle East ease and globally significant shipping traffic through the Strait of Hormuz is restored.