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2022-11-16 11:00:00

EUROPEAN GAS PRICES UP

EUROPEAN GAS PRICES UP

BLOOMBERG- Nov 15, 2022 - European energy prices advanced amid concerns about liquefied natural gas imports from a key US facility and the first signs of cold weather.

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.

Temperatures on the continent are set to dip toward the end of the week, which could lift power and gas prices as heating demand increases. The combination of a cold snap and supply woes is a reminder that the European system will be fragile during the first winter in recent memory without significant Russian flows.

“Even though the winter has started mild, it’s too early to sell your skis. The winter could be coming any day soon,” Oystein Kalleklev, chief executive officer at Flex LNG Ltd., said in an earnings webcast on Tuesday. “It’s basically only small quantities of gas being exported to Europe, ironically enough, through Ukraine.”

Prices had been falling in recent weeks amid warmer-than-usual temperatures, delaying the start of the heating season, and strong liquefied natural gas flows that helped to fill stocks. But even with the buffer, the crisis is far from over. Futures are trading at about four times the five-year average.

“The gas levels in Europe is sufficient to cover about seven weeks of winter demand,” Kalleklev said, warning that next year will be more challenging for Europe.

Dutch front-month gas, Europe’s benchmark, closed at €124.10 a megawatt-hour after rising as much as 13% earlier in the day. The UK equivalent rose 9.6%.

“This increase may seem excessive. But unfortunately it is completely in line with the level of market volatility,” analysts at EnergyScan, the market analysis platform of Engie SA, said in a note. “We will rather have to worry if prices tend to go back above their 1-year average, currently at €133 a megawatt-hour, because it would mean that the uptrend would be back.”

Freeport LNG told buyers it will likely cancel shipments scheduled for November and December as work continues on repairs and regulatory approvals before a restart, according to people with knowledge of the matter.

The plant previously accounted for about 15% of US shipments of the fuel, and the outage extension is set to increase the competition for cargoes in Europe and Asia.

Power prices rose along with the cost of fueling Europe’s gas-fired power stations. German power for next year, a benchmark for the continent, rose as much as 11% to €334 per megawatt-hour on Tuesday.

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Earlier:

EUROPEAN GAS PRICES UP
2022, November, 7, 11:55:00
EUROPEAN GAS PRICES FALL ANEW
Risks over existing gas supplies from Russia will continue through the coming months, with just one pipeline route open to the biggest European customers.
EUROPEAN GAS PRICES UP
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.
EUROPEAN GAS PRICES UP
2022, November, 2, 11:45:00
EUROPEAN GAS PRICES RISE
Dutch front-month gas, Europe’s benchmark, traded 2.4% higher at €119 per megawatt-hour by 8:43 a.m. in Amsterdam after losing 5.8% a day earlier.
EUROPEAN GAS PRICES UP
2022, November, 1, 17:05:00
EUROPEAN GAS PRICES FALL
Europe’s gas storage sites are nearly 95% full, providing a buffer for when the weather turns colder. Reserves in the biggest gas consumer, Germany, have risen to 99%, according to Gas Infrastructure Europe.
EUROPEAN GAS PRICES UP
2022, October, 31, 12:05:00
EUROPEAN GAS PRICES UPDOWN ANEW
The recent fall in European gas prices may not last, according to Italian energy major Eni SpA. “It’s a temporary situation,” Chief Executive Officer Claudio Descalzi said in Abu Dhabi. “We have problems in 2023 because in 2023 we don’t have Russian gas.”
EUROPEAN GAS PRICES UP
2022, October, 31, 12:00:00
EUROPEAN WINTER GAS RISKS
The push to fill storage facilities before the start of winter has been successful -- with many close to capacity. But some suppliers may now want to hold back those reserves until they can sell their stored gas at more attractive rates.
EUROPEAN GAS PRICES UP
2022, October, 28, 11:55:00
EUROPEAN GAS DEFICIT
While US fuel now makes up 40% of Europe’s liquefied natural gas imports, it will only offset a fraction of the deficit from Russia next summer,
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Tags: EUROPE, RUSSIA, GAS, PRICE, SANCTIONS, ENERGY, ELECTRICITY