Page 10 - GLNG Week 42 2022
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GLNG EUROPE GLNG
European gas prices
continue to fall amid warm
weather and ample LNG
MARKETS THE front-month contract at the Dutch TTF gas The recent steady decline comes as the Euro-
hub dipped to close to €113 per MWh ($1,200 pean Commission puts off coming up with a
per 1,000 cubic metres) on October 18, repre- concrete proposal for a wholesale gas price cap,
senting its lowest level since June, as a result of amid continuing disagreement among EU mem-
warmer than usual weather, and ample LNG ber states about what form the cap should take.
supply. The Commission said on October 18 it would
Russian gas supply dropped to an all-time low ask EU countries for their approval to draft plans
of 2.3bn cubic metres per month in September for a temporary “maximum dynamic price” on
and is at risk of falling further if transit is dis- transactions at TTF. But it will only consider this
puted through Ukraine over a payment dispute. as a “last-resort measure,” and only if that price
So far, however, this has been offset by reduced limit meets certain conditions. The cap has been
demand and increased LNG supply. under debate in Europe now for months.
European gas prices have fallen substantially Gas futures prices are significantly more bull-
since spiking in late August to an all-time record, ish beyond November, however. The December,
as LNG supply remains buoyant while EU gas January, February and Q1 2023 contracts are all
storage facilities have now been filled to close to trading at €140-150 per MWh, signalling the
93% capacity. The November contract at TTF market’s concern that supply will be scarce if it
had spiked at €350 per MWh on August 26, after proves to be a cold winter and if there are supply
it was announced that the Nord Stream 1 pipe- disruptions.
line would be taken offline.
P10 www. NEWSBASE .com Week 42 21•October•2022
