European Natural Gas Prices Surge as Winter Blast Stokes Demand




  • In Business
  • 2022-12-08 12:36:39Z
  • By Bloomberg

(Bloomberg) -- European natural gas prices fluctuated as record imports of liquefied natural gas helped to offset a blast of winter weather that is testing the region's resilience to the energy crisis.

Most Read from Bloomberg

  • Putin Calls Russian Nukes Deterrent Factor, Says War Risk Rising

  • Peru's President Accused of Coup After Move to Dissolve Congress

  • Why Did So Many US Men Quit Working? Social Status May Hold the Key, Study Says

  • Be Careful, Here Come the Predictions for 2023

  • Musk Spars With San Francisco Over Probe of Bedrooms at Twitter

LNG imports into northwest Europe have surged in recent weeks as high prices attract shipments. The continent is also seeking to prevent its gas stockpiles from dwindling as demand for heating soars.

From London to Latvia, temperatures are set to drop below freezing in the coming days, forecasts show. It's Europe's first real trial of the season after Russia curbed gas supplies in the fallout over its war in Ukraine. A slump in wind power and nuclear outages in Sweden and France are also straining power and gas networks.

"We now expect two-thirds of all US LNG cargoes to land in Europe this year," said Kristy Kramer, vice president for gas & LNG research at Wood Mackenzie Ltd. "Regasification capacity is currently the major impediment to even more US LNG exports to Europe."

Europe's gas storage levels are still more than 90% full, after dropping from almost 96% in mid-November, according to data from Gas Infrastructure Europe. The recent cold snap has coincided with additional outages at facilities in Norway.

Traders are also closely watching activity in China, which is loosening Covid-related restrictions that have crimped energy demand. A freeze in Asia could increase international competition for LNG.

"Germany has one of the highest prices for LNG now, and that has helped to attract cargoes," said Peter Heydecker, executive director of trading at German energy company EnBW. "We have a huge need now, but we compete globally. We still see enough LNG coming, but that can quickly change and we need to keep an eye on Asia's demand."

Dutch front-month futures, the European benchmark, rose 1% to €150.80 per megawatt-hour by 1:33 p.m. in Amsterdam. The UK equivalent contract increased 1.3%.

--With assistance from Vanessa Dezem.

Most Read from Bloomberg Businessweek

  • Airbus Is Coming for Boeing's 737

  • China Is the Wild Card for Global Inflation in 2023

  • The Cult of the Retail Trader Has Fizzled

  • The Viral List That Turned a Yale Professor Into an Enemy of the Russian State

  • The Club With a 60,000-Woman Waitlist

©2022 Bloomberg L.P.

COMMENTS

More Related News

Adani Group Stocks Plunge, Extending Rout After Hindenburg Report
Adani Group Stocks Plunge, Extending Rout After Hindenburg Report

(Bloomberg) -- Shares of Adani Group's companies have lost almost $45 billion in market value in less than two sessions, as a selloff sparked by US short...

Thai Finance Ministry Sees Sustained Baht Gains on Tourism Boom
Thai Finance Ministry Sees Sustained Baht Gains on Tourism Boom

(Bloomberg) -- The baht is set to extend its rally as the Chinese reopening buoys the outlook for tourist arrivals, helping propel Thailand's growth this...

Chip Stocks Extend Gains in Asia, Defying Intel
Chip Stocks Extend Gains in Asia, Defying Intel's Sales Warning

(Bloomberg) -- Asian semiconductor stocks rose Friday, dismissing one of the worst-ever outlooks from stalwart Intel Corp. as investors look toward an...

Putin Plans New Ukraine Push Despite Losses as He Prepares for Years of War
Putin Plans New Ukraine Push Despite Losses as He Prepares for Years of War
  • World
  • 2023-01-27 05:00:24Z

(Bloomberg) -- Nearly a year into an invasion that was supposed to take weeks, Vladimir Putin is preparing a new offensive in Ukraine, at the same time...

Hunt to Rule Out Tax Cuts While Touting UK
Hunt to Rule Out Tax Cuts While Touting UK's Brexit Potential

(Bloomberg) -- Chancellor of the Exchequer Jeremy Hunt is expected to disappoint investors and his critics in the UK ruling party Friday by rejecting calls...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business