2022-09-28 12:35:00
EUROPEAN GAS PRICES UP AGAIN
BLOOMBERG - Sep. 28, 2022 - Natural gas prices in Europe surged after Russia said it may cut off supplies via Ukraine, the last route still delivering the fuel to western Europe.
Benchmark futures surged as much as 12%, jumping for a second day. The warning ratchets up the energy conflict with Europe, coming just after major leaks were reported on the Nord Stream pipelines that European authorities are calling a act of sabotage. The situation heightens concerns over shortages with the heating season just days ahead, countering efforts by nations to quickly fill up storages and curb consumption.
Russia’s Gazprom PJSC warned Tuesday that flows through Ukraine were at risk because of a legal spat. If these are halted, western Europe would be cut off, leaving just the TurkStream pipeline sending gas to Turkey, and some south and southeastern European countries. Supply via Ukraine were stable on Wednesday, but at the reduced levels seen since the war.
The gas market has been roiled this week after nerves over shortages and blackouts had eased over the previous few days, that had sent gas prices tumbling from their August peaks. But risks have returned after the powerful underwater explosions in the Nord Stream pipeline left massive streaks of gas bubbling in the Baltic Sea. It means that the link, which has been shut over the past month, won’t bring any fuel to Europe for a long time.
Dutch front-month gas, the European benchmark, rose 11% to 206 euros per megawatt-hour at 8:47 a.m. in Amsterdam. Price increased 7.1% on Tuesday.
Tensions also rose as Russia moved to annex a large chunk of Ukrainian territory after it declared victories in hastily organized referendums it held in the territories currently occupied by its forces and prepared to absorb them within days.
The worsening of the energy crisis increases Europe’s dependence on liquefied natural gas and leaves it more exposed to any disruptions in US supplies. Hurricane Ian has led to some production in the Gulf of Mexico being shut, raising concerns that this source of supply could also be limited.
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Earlier:
2022, September, 22, 16:30:00
EUROPEAN ENERGY CRISIS PLAN
The European Commission aims to publish Sept. 28 a document detailing future steps to ease volatility and increase trading volume in energy markets after surging prices led to ballooning margin calls
2022, September, 19, 12:55:00
EUROPE: FREEZE TO SAVE
With European energy prices at acute levels, there are huge risks that could destabilise the whole social, economic, and political fabric of Europe.
2022, September, 15, 16:25:00
EUROPEAN ENERGY CRISIS €140 BLN
The plan is expected to raise €140bn, including €117bn from the temporary revenue cap on inframarginal electricity producers and €25bn from the temporary solidarity contribution based on taxable surplus profits made in the fiscal year 2022 on energy undertakings in the oil, gas, coal and refinery sectors
2022, September, 14, 13:05:00
EUROPEAN ELECTRICITY PRICES RECORDS
So far, in 2022, spot electricity prices are five to ten times higher than in previous years. On August 22, the daily spot market price for Germany exceeded 600 EUR/MWh, 15 times the average of the 2010s.
2022, September, 5, 14:35:00
EUROPEAN ENERGY CATASTROPHE
Gas prices surged more than 35% on Monday as traders reacted to Russia’s decision to keep its main gas pipeline shut indefinitely.
2022, September, 5, 14:30:00
EUROPE PAYS HARD
Europe and North America are sanctioning the Russian economy, including its energy exports, while Russia is retaliating by cutting key resources, in particular natural gas flows to Europe. This is massively disruptive
2022, September, 5, 14:25:00
EUROPEAN COLD WINTER
That should help to make future decision making easier. But it is not going to help keep us warm this winter or indeed even in winter 2024.
