European gas prices have approached their highest levels since the start of the Iran war as Wednesday’s solar eclipse and another heatwave add to demand for gas-fired power generation while maintenance at a key Norwegian gasfield will take longer than planned. The benchmark TTF contract briefly traded above €62 per megawatt-hour intraday on Tuesday, heading towards the €63 per MWh peak reached on July 24. Demand for gas to fuel power stations has been pushed up by high demand for air conditioning and lower output from nuclear and coal plants due to heatwaves.

Wednesday’s solar eclipse is set to add to demand for electricity from gas-fired power stations owing to the expected loss of around 9.7 gigawatts of solar power in Europe. Meanwhile, Norway’s gas pipeline operator Gassco said output at Shell’s Ormen Lange offshore gasfield would be curtailed for longer than planned because of technical problems. Global LNG supplies remain constrained due to the Iran war, and European gas stocks are low.

Demand for gas for electricity generation in western Europe was roughly 714 million cubic metres higher in July than in a normal year, according to Wood Mackenzie. Temperatures are expected to be high again this week, with the UK Met Office issuing an amber warning of up to 38C. Day-ahead electricity prices in Germany cleared at €461.17 per MWh for the eclipse period, reflecting tight power margins.

In Britain, Octopus Energy will offer households free electricity this weekend if they use less during the eclipse hours, helping to reduce the need for gas power stations.