The price per megawatt-hour of natural gas in Europe, which started in early trading on the Netherlands-based virtual natural gas trading point (TTF) at €110 ($122) increased by around 13% to €123.
The gas contract price for April opened at around €110 but sharply increased following statements from German Economy Minister Robert Habeck.
Announcing an emergency plan, Habeck said his country should prepare for potential gas supply disruption in the coming days after Russia said it would only accept payments in rubles for gas deliveries.
"In order to make preparations for this situation, I've activated this morning the early warning level according to the gas regulation," he said, referring to the first of three stages in Germany's emergency preparedness plan.
Habeck reiterated that German energy companies would not pay for Russian gas in rubles as their contracts stipulate payment in dollars and euros.
In response to Western sanctions on Russia, Moscow had announced earlier this month that it would only accept payments in rubles from "unfriendly countries" for its gas deliveries. Russian authorities are expected to announce new rules for gas payments on Thursday.
One euro is currently equal to 16.35 Turkish liras.