Spot prices for gas in Europe mid-week break uhodyaschaya trend growth cautious on the background of the beginning of injection into storage and showed a new low.
At the end of trading on the British National Balancing Point (NBP) gas on Thursday was $67,5 per thousand cubic meters (15.45 pence per therm). At the main site of Europe Dutch TTF gas on Thursday is $79,33 per thousand cubic meters (of 7.05 euros per MW h), Interfax reports.
According to Gas Infrastructure Europe platform, a flow of gas into the European system through the LNG terminals during the first seven days of April 2020 declined 6% compared to the same day in 2019, despite the fact that in March, the arrival of LNG in Europe rose by 9.6%. And the LNG inventory at the terminal during the first week of April — on the contrary increased by 5%.
If this trend continues, because April could be the first month since the winter of 2018, when LNG deliveries to the continent decreased (despite the fact that in 2019, they showed an increase in two times).
Speaking of falling prices, analysts Wood Mackenzie have noted that gas demand has fallen too quickly, and while the supply side has not time to react to it.
WoodMac analysts share that the epidemic of the coronavirus causing problems for the LNG carriers. Travel restrictions and requirements of sanitary safety lead to the fact that most tankers can’t change the team.
Wood Mackenzie observes a significant increase in the time spent by goods in transit, which began in March and is being further developed in April. Experts note that this measure (though extreme) — store LNG for gas — as a way of solving the problem of an oversupplied market.
Friday 3 April began pumping gas into underground storage Europe, according to data from Gas Infrastructure Europe. The minimum level of gas in storage for the season was 54,02% compared 40,51% in 2019 and 18.6% in 2018. Now in storage is 16 billion cubic meters of gas more than last season. Unspent for a warm winter, gas in storage will reduce the demand during the upgrade of reserves in underground storage facilities.