Page 12 - GLNG Week 05 2023
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Europe ramps up gas withdrawals
EU EUROPEAN gas consumers sharply increased front-month TTF price was $600 per 1,000 cubic
gas withdrawals from storage facilities at the end metres – in comparison, prices in Asia exceeded
Traders are anticipating of January, more than tripling them versus the $700 per 1,000 cubic metres on the same day.
lower prices to come. level in the first half of the month, according to Asia has traditionally offered a premium LNG
data published by Gas Infrastructure Europe price versus Europe, but this situation reversed
(GIE). last year as the European energy crisis unfolded.
In the January 19-25 period, average gas Now, finally, the situation has returned to the
withdrawals in the EU reached 693mn cubic status quo.
metres per year, according to GIE. During that Temperatures have also fallen, and wind
period, gas storage utilisation dropped by more power generation was weak in the latter half
than five percentage points from 80.1% to 74.8%. of January. In December and in the first half of
As of January 25, there was 76.7bn cubic metres January, temperatures had exceeded the climatic
of gas in storage. norm by 15 degrees Celsius or more. But temper-
In comparison, withdrawals averaged only atures dropped to historic averages towards the
402.4 mcm per day in December, and only 213 end of the month.
mcm per day in the first half of January. Vedo- Meanwhile, according to the WindEurope
mosti reported on January 27 that in the previ- Association, wind farms contributed 10.4-17.6%
ous week, the quantity of gas in storage fell by 10 of EU energy generation in January 21-30, versus
bcm. Around the same amount was withdrawn 16.5-35.4% in the first 20 days of the month.
during the whole of December. According to Vedomosti, European traders
Falling prices in Europe led to some Euro- are also taking more gas out of storage because
pean buyers getting outcompeted for cargoes of expectations that prices will fall further in the
by Asian customers, Vedomosti reported. The future.
P12 www. NEWSBASE .com Week 04 27•January•2023
