• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days Does Toyota Know Something That We Don’t?
  • 1 day America should go after China but it should be done in a wise way.
  • 7 days World could get rid of Putin and Russia but nobody is bold enough
  • 9 days China is using Chinese Names of Cities on their Border with Russia.
  • 10 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 9 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 10 days Putin and Xi Bet on the Global South
  • 10 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
European Natural Gas Prices Continue To Drop

European Natural Gas Prices Continue To Drop

Europe’s benchmark natural gas prices…

Diesel Prices Set to Surge in 2024

Diesel Prices Set to Surge in 2024

Diesel prices are expected to…

Gasoline Prices: Why Do We Pay What We Pay At The Pump?

Gasoline Prices: Why Do We Pay What We Pay At The Pump?

Gasoline prices are influenced by…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Europe’s Natural Gas Glut May Force Supply Cuts

Europe is so awash with natural gas amid weak demand and limited storage capacity that gas suppliers may have to cut flows to prevent natural gas prices from plunging further.  

Demand for natural gas is still very weak as major economies in Europe are emerging from lockdowns while gas in storage across the continent is at a record high for this time of the year. The natural gas glut has depressed the prices at key European hubs such as the Dutch TTF benchmark. Prices didn’t move much even after the biggest gas exporter to the continent, Gazprom, saw its flows on a key pipeline fall to zero last week.

The flow of natural gas from Russia to Europe via the Yamal-Europe pipeline crossing Poland completely stopped early last week after a two-and-a-half-decade-old transit deal between Russia and Poland expired and after the COVID-19 pandemic battered gas demand in Europe.

Poland has aligned its legislation with the energy regulations of the European Union (EU) and Polish operator Gaz-System began offering capacity bookings on the Polish section of the Yamal-Europe pipeline in accordance with EU regulations, including for Russia’s gas giant Gazprom. But the capacity bookings for the first days following the expiration of the gas transit deal showed little appetite for gas in Europe, according to analysts. Related: World’s Top Solar Panel Producer Opens New Mega Factory

“Natural gas demand is very weak and low prices are signaling supply must be cut,” Trevor Sikorski, an Energy Aspects gas analyst, told Bloomberg.

According to the analyst, another major natural gas supplier to Europe, Norway, could delay some production from the Troll and Oseberg fields due to the weak prices. 

For liquefied natural gas (LNG), U.S. exports are currently unprofitable because the natural gas prices in Europe are lower than the prices of the U.S. Henry Hub benchmark, analysts told Bloomberg.

“Although Europe’s total gas demand is down in comparison to last year, reductions in domestically produced gas and Russian pipeline imports have created more room for LNG to be absorbed. However, the single largest fundamental difference from 2019 is Europe’s vast gas inventories, which currently sit at record seasonal highs and will reduce the continent’s ability to absorb global surplus LNG in Q3 2020,” Wood Mackenzie said in a note on  Tuesday.  

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News