Page 12 - GLNG Week 05 2022

GLNG EUROPE GLNG

European gas storage falls

below 40% threshold

PERFORMANCE VOLUMES in European gas storage facilities fell of gas shortages this winter, analysts still see the
to under 40% of capacity on January 28, with still low level of storage as a source of concern. For
two months to go until the likely end of the win- comparison, storage facilities were nearly 52%
ter heating season. full this time last year.
Data published by Gas Infrastructure Europe “Europe has been blessed with normally
(GIE) shows that utilisation of facilities in the EU windy and somewhat warm weather this Jan-
and the UK had shrunk to under 39% by January uary, but gas reserves are nonetheless quickly
31, down 0.4% percentage points day on day. falling from what are already record-low levels,”
Fortunately, temperatures have been rela- analysts at BCS Global Markets (GM) said in a
tively high and wind power generation strong research note on January 28.
this month, easing pressure on the natural gas BCS GM explains that reserves are fall-
system, and this has kept wholesale gas prices ing because of the short-term nature of Gaz-
in check. The March delivery contract at the prom’s contract pricing, under which around
Dutch TTF hub was down over 4% by afternoon half of sales are based on either day-forward or
trading on January 31, trading at just under €88 month-forward hub prices.
($98.20) per MWh, after several windswept days “Presumably much of that is month-forward,
that have led to a surge in wind power generation and given average prices in December were
across Europe. $1,300 per 1,000 cubic metres but January spot
In Germany, as of 13:00 GMT on January 31, prices have generally been between $800 and
wind farms accounted for 55% of available elec- $1,100 per 1,000 cubic metres, gas buyers’ pref-
tricity in the country, whereas natural gas con- erence for spot purchases or pulling gas from
tributed just above 5%. In the UK, wind occupied storage is understandable,” the Moscow-based
a one-third share, beating gas, which accounted brokerage said. “We would expect exports
for 31.5%. to pick up sharply on February 1 when those
While recent conditions have allayed fears month-forward prices are reset.”™

NEWS IN BRIEF

AFRICA traders and intends to sign a 5-year contract production to the domestic market.
for the deal, said Leila Benali, Energy In a statement, NLPGA president and
Spain allows Morocco Transition and Sustainable Development executive council head Nuhu Yakubu said he
expected this move to help ensure Nigerian
Minister.
to use Maghreb-Europe regasification capacity. In October 2021, consumers’ access to LPG supplies. “In
Spain holds a third of Europe’s
recent months past, Nigerians have had
Pipeline to import LNG Algeria terminated its natural gas contract to pay significantly more to buy cooking
gas owing to supply disruptions,” he said.
with Morocco over growing political tensions
Morocco intends to use Spanish facilities to between the two neighbours. “This supply intervention move by NLNG is
secure LNG imports, Bloomberg reports. Morocco was expected to face difficulties expected to free up more volumes and have
After more than two months of talks, in meeting its LNG needs due to its price, and some cushioning effect on the high price of
Madrid finally gave the green light to due to the fact that the country does not have cooking gas, subject, however, to its realistic
the project, allowing Morocco to use the a floating terminal to import LNG. production output, as determined by other
Maghreb-Europe Pipeline to purchase natural factors.”
gas from international markets. Yakubu noted that NLNG has been
Morocco, which lacks sufficient NLNG hailed for directing all allotting an increasingly large share of its LPG
infrastructure for the process, will deliver production to the domestic market since 2007,
the LNG to Spain by cargo and then receive LPG production to domestic when it apportioned 50,000 tonnes for local
the reconstituted gas back across the use. This year, he said, the consortium is set to
Mediterranean through the Maghreb gas market deliver 450,000 tonnes, or 100% of its output,
pipeline. The plan depends on a trade co- to the domestic market.
operation agreement between Morocco and The Nigeria LP Gas Association (NLPGA) has NLNG has supported campaigns to
Spanish operator Enagas. hailed the Nigeria LNG (NLNG) consortium promote the use of LPG as cooking gas and
The government opened a bid for LNG for its decision to direct all of its LPG as automobile fuel, as well as petrochemical

P12 www. NEWSBASE .com Week 05 04•February•2022