2022-12-12 15:45:00
EUROPEAN GAS PRICES UPDOWN ANEW
BLOOMBERG - Dec. 12, 2022 - European natural gas prices slumped as much as 9% with LNG imports soaring and French nuclear output steady, even as the region battles a blast of winter weather.
Inflows from the UK’s three liquefied natural gas terminals are at record levels for the time of year, grid data compiled by Bloomberg show. Shipments of the fuel to northwest Europe are also near an all-time high.
The Arctic weather is the first real test of Europe’s resiliency this season as it faces a historic energy crisis, with Russia curbing gas supplies to the region. Gas prices have trended higher in recent weeks, but so far Monday there haven’t been any wild swings, even with the northern fringe of the continent in a deep freeze and snow blanketing London.
Forecasts also show a reprieve next week, with the southern part of the continent expected to see warmer temperatures.
LNG imports have soared as the region seeks to replace fuel it would ordinarily secure from Russia. Germany’s first floating LNG terminal is set to arrive at the port of Wilhelmshaven this week, with gas flows to start Dec. 22.
Europe’s storage facilities are about 88% full, higher than usual for this time of year, and in Germany — the region’s largest economy — the level is 94%, according to data from Gas Infrastructure Europe. The focus is on how quickly the buffer will be used throughout the winter.
Germany “most probably” won’t face gas rationing this year or next, even amid lower Russian supplies, Deutsche Bank analysts said in a note on Monday. Contracts are expected to average slightly over €100 per megawatt-hour in 2023, “with winter weather and impact of China reopening key sources of uncertainty,” they added.
Dutch front-month futures, the European benchmark, fell 4% to €133.55 per megawatt-hour by 11:03 a.m. in Amsterdam. Earlier the contract dropped to its lowest level since Dec. 2.
The UK equivalent declined 3.2%, even as gas demand surges. Inflows of the fuel from mainland Europe started last week via one of the two interconnector pipelines, adding to LNG supply.
Other factors are helping to take the pressure off Europe’s gas markets, including an increase in pipeline flows to Italy from Algeria. Wind power generation in Germany and the UK is poised to rise from next week after a period of low-output.
French nuclear generation is at the highest level since March. Electricite de France SA didn’t extend any outages over the weekend, and two more reactors could be producing power by the end of the week.
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Earlier:
2022, December, 2, 09:45:00
EUROPEAN GAS PRICES UPDOWN AGAIN
Gas prices are four times higher than normal for this time of year, fueling inflation and hurting economies.
2022, November, 30, 11:40:00
EUROPEAN GAS LIMITS
The EU aims to end its reliance on Russian fossil fuels by 2027. For now, Moscow’s move to halt supplies through the main Nord Stream 1 pipeline has led the bloc to increase shipments of Russian seaborne gas by around 50 per cent.
2022, November, 30, 11:35:00
EUROPEAN ENERGY NEED FUNDS
The European Union needs additional funds to decouple from Russian gas and shield companies and households from the current energy crisis,
2022, November, 28, 10:10:00
EUROPEAN ENERGY CRISIS CONTINUES
Despite having already spent hundreds of billions of euros ensuring storage sites are filled this winter and providing support to households and businesses, the strain on public funds as well as pain for households and businesses are likely to continue next year.
2022, November, 25, 10:50:00
EUROPEAN ENERGY PACKAGE
Failure to reach a deal would send a signal that the EU’s united response to the war-driven energy crisis is falling apart -- a political gift for Moscow that Europe is keen to avoid.
2022, November, 16, 11:00:00
EUROPEAN GAS PRICES UP
Benchmark gas futures settled 9.2% higher, following an increase of 16% on Monday. Freeport LNG in Texas will likely extend an outage that began in June, increasing global competition for much-needed supplies right before the winter.
2022, November, 3, 12:20:00
EUROPEAN ENERGY TRANSFORMATION
Currently, the most expensive form of generation -- gas -- sets the price for all electricity that’s sold into the market. That means consumers are bearing the brunt of Russia’s supply cuts to the continent. It also means Europe isn’t feeling much of the benefit of low-cost renewables like wind farms, which get to sell at big margins.
