Insight
What is driving record gas price differentials in Northwest Europe?
Report summary
The risk to Russian gas supplies to Europe has been widely discussed since the invasion of Ukraine took place on 24th February. The response by EU countries is to quickly reduce reliance on Russian gas by nominating minimum contractual flows and introducing legislation to ensure storage minimum inventory fill by November this year. These combined actions have facilitated record volumes of LNG being delivered to the NW Europe market leading to changes in pipeline flow direction. With Dutch and Belgian LNG terminals at capacity, record volumes of LNG delivered into the UK terminals has been re-exported to Germany via Belgium and the Netherlands, requiring maximum capacity to be used by BBL and IUK, the UK's two export pipelines to mainland Europe. Demand for capacity in these pipelines has been so high that large price differentials have developed. This Insight shows how the constrained flows have impacted prices whilst Germany and the Netherlands increase injection rates to storage.
Table of contents
- Large price differentials at NW European gas hubs caused by changes in flow direction has exposed some capacity limitations in the region's pipeline infrastructure
Tables and charts
No table or charts specified
What's included
This report contains:
Other reports you may be interested in
Asset Report
Mukran Phase 2 Energos Power
Mukran Phase 2 Trangas Power, formally known as Lubmin FSRU Dynagas, is an under construction regas terminal at the Mukran port, ...
$1,200
Asset Report
Zeebrugge - LNG regas terminal
The Zeebrugge LNG regasification terminal asset report
$1,200
Commodity Market Report
Northwest Europe power long-term sensitivity: Impacts of commodity price variability (hourly data)
Hourly data from our sensitivity analysis quantifying the impact of commodity price variations.
$18,000