Insight
Spanish gas supply 2020 – more flexing for changing portfolios
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Europe has played a critical role in absorbing LNG supply growth in 2019. Notably, Spain accounted for 30% of the uptick in European LNG imports as buyers nominated down on more expensive oil-indexed Algerian pipeline contracts in favour of competitively priced spot gas and LNG. As the oversupply intensifies in 2020, Spanish buyers will continue to optimise the most competitive supply sources. However, many of their portfolios look very different in 2020 versus 2019, so there is little chance of a year-on-year status quo. Can the market rely on Spain to accommodate even more LNG in 2020? How much flexibility is left to create additional gas demand, or to flex pipeline gas supplies down even further?
Table of contents
- Executive Summary
- Spain’s critical role in balancing the global LNG market
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Spanish import capacity outweighs its need for gas
- Is any existing import infrastructure at risk?
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Buyers optimise gas contracts to take most competitive supply
- Have Algerian pipeline flows reached a floor?
- Sonatrach’s piped export strategy will need to evolve
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Growing LNG availability and pipeline access to NWE has offered low cost options
- The French zone merger has helped attract competitive spot priced gas into Spain
- Contracted LNG to Spanish utilities will increase further into 2020
- Conclusion: Can Spain continue to offer so much flexibility to the market as the oversupply intensifies?
Tables and charts
This report includes the following images and tables:
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Spain gas balance year-on-year (Jan-Nov)Gas and LNG InfrastructureHistorical piped gas imports (Algeria-Spain)
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Algeria pipeline contracts to Spain (ACQ)Naturgy’s pipeline contracts from AlgeriaPricing differential and Algeria to Spain flowsPricing differential and France to Spain flowsHistorical piped gas imports (France-Spain)Historical LNG deliveriesLNG contracts to Spain (ACQ)Spot gas and LNG availability to Spain
What's included
This report contains:
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