• 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
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 16 hours How Far Have We Really Gotten With Alternative Energy
  • 2 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 2 days Bankruptcy in the Industry
  • 3 days The United States produced more crude oil than any nation, at any time.
Uzbekistan's Natural Gas Crunch Squeezes State Coffers

Uzbekistan's Natural Gas Crunch Squeezes State Coffers

Uzbekistan, once a gas exporter,…

Europe Still Addicted To Russian LNG

Europe Still Addicted To Russian LNG

The fact that neither pipeline…

Natural Gas ETFs Among The Worst Performing Equities

Natural Gas ETFs Among The Worst Performing Equities

Exchange-traded funds (ETFs) that track…

ZeroHedge

ZeroHedge

The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

Gas Prices In Europe Drop As U.S. LNG Flotilla Arrives

LNG terminal

A flotilla of liquefied natural gas (LNG) from the US has finally arrived in Europe, increasing LNG imports on the fuel-starved continent to a two-year high. The fresh injection of natural gas is helping to offset declining Russian shipments. Prices of European natural gas fell Monday.

Data compiled by Bloomberg shows LNG gas imports in northwest Europe jumped to their highest levels since December 2019. The supply comes from a flotilla of up to 20 LNG vessels from the US that began their sailings in mid/late December. 

Fresh supplies of LNG are helping to ease supply woes but will not solve the energy crisis on the fuel-starved continent this winter because stockpiles are at very low levels for this time of year. News of fresh supplies is temporary relief and has resulted in front-month Dutch gas futures falling as much as 6% to 82.50 euros a megawatt-hour and traded at 88 euros around 0600 ET. 

Since mid-December, European gas prices have been halved from about 182 euros to 88 euros today. The downdraft is primarily due to the prospects of the flotilla.

Notably, there is still a significant arbitrage spread between US and EU Nattie prices over and above historical norms...

"With the peak of winter still ahead, we see a wide range of potential near-term price outcomes and expect elevated volatility to persist," Morgan Stanley wrote in a commodity note. 

Still, the flotilla only offers the fuel-starved continent temporary relief as Russia gas flows remain muted. The Yamal-Europe pipeline, sending gas into Germany from Russia, has been in reverse for three weeks, and other major pipelines into Europe have recorded below-average flows. 

A resolution to Europe's energy crisis is certifying Russia's Gazprom PJSC's controversial Nord Stream 2 pipeline, but that doesn't seem possible until summer. So in the meantime, gas prices will remain elevated. If another winter blast comes around, gas prices will undoubtedly go back above 100 euros. 

ADVERTISEMENT

By Zerohedge.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • P L on January 11 2022 said:
    It seems Germany is shooting itself in the foot by dragging their feet in the certification of NS2.
  • P L on January 11 2022 said:
    Seems Germany is shooting itself in the foot by dragging their feet in the certification of NS2.

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