EUROPE GAS-Prices fall on weak demand, mild weather, steady LNG arrivals

Yahoo/Reuters ^ | 18 October 2022

[Hamiltonian]

LONDON, Oct 18 (Reuters) - Dutch and British wholesale gas fell on Tuesday as low demand due to warmer-than-usual weather and ample supply due to the steady arrival of liquefied natural gas (LNG) tankers put pressure on prices.

The benchmark front-month Dutch contract dropped for the fifth consecutive trading day and was down 13.50 euros at 116.50 euros per megawatt hour (MWh) by 0858 GMT, the lowest level since mid-June.

The British day-ahead contract fell by 23.00 pence to 35.00 pence per therm

"Weak demand and comfortable supply continue to exert strong downward pressure. New weather forecasts pointing to warmer temperatures provide additional downward pressure," said analysts at Engie EnergyScan.....

The steady arrival of ships carrying LNG to Europe has also eased concerns about shortage of supply as Russia has progressively cut gas flows.

However, there are more than 35 LNG-laden vessels drifting off Spain and around the Mediterranean, and ports remain busy for unloading.

"The drop (of Russian supplies to Europe) has now nearly been completely absorbed by the market, which is a promising omen for Europe at the start of the winter," analysts at Marex Research said...............

[gloryblaze]

Yes, we got our first hard frost here is Wisconsin last night. But I’m sick with a head cold so the flowers can just wilt away; too cold to deal with it while under the weather...

[gloryblaze]

I don’t recognize him, either.

[canuck_conservative]

Germany is also talking about ending their fracking ban

Europe is finally waking up to the new reality and getting serious

[buwaya]

Temporary old boy.
We are in the middle of an adjustment, which is working. Hence decreasing prices.

There is no excuse to be tied to the Russian tit. It is insane.

[Hamiltonian]

When it reaches near parity with US prices.

When was that?

[Hamiltonian]

And was on infrequently for 15+ years before that.

[WMarshal]

"When was that?"

Don't you mean "When will that happen?" It will never happen with total dependence on LNG shipments from America. LNG requires far more infrastructure investment and costs when does pipeline natural gas.

[WMarshal]

Sorry crocodile, relying on LNG from America is too expensive for Europe to be an industrial power.

[FLT-bird]

Mercedes Benz has a plant in Alabama. They’ll just expand it if there are sales to be had and producing in Germany is too expensive.

[FLT-bird]

Its from Game of Thrones. The motto of his house is

Winter is Coming

[canuck_conservative]

but America doesn’t play delivery games or arbitrarily change the contract terms (e.g. forcing euros to rubles) like Russia does

maybe Europe is just tired of Russia’s constant games & unreliability?

[Hamiltonian]

Here's a little about the Good Guys in this scenario:

The United States became the world’s largest LNG exporter in the first half of 2022

The United States became the world’s largest liquefied natural gas (LNG) exporter during the first half of 2022.....

[WMarshal]

"Mercedes Benz has a plant in Alabama. They’ll just expand it if there are sales to be had and producing in Germany is too expensive."

Exactly, deindustrialization of Germany.

[Hamiltonian]

Hasn't happened previously, in fact the spread between European and Henry Hub prices was going in the wrong direction well before Feb 22. And the European economy is still there.

.

[buwaya]

There is a whole world of gas out there, and plenty of sources, lots of which can be piped. There will be a proper glut, I predict, by sometime next year.

Spain uses LNG, thats why its expanding its terminals and pipeline connections to France. Spain is not on the Russian tit. And so on.

This will blow over. Nordstream and all that was a truly stupid episode, getting tied to a monopoly source. And such a source.

[ding_dong_daddy_from_dumas]

That would make sense. I was wondering about However, there are more than 35 LNG-laden vessels drifting off Spain and around the Mediterranean, and ports remain busy for unloading.

[Forward the Light Brigade]

Lucky for now—but its not November yet. The end of the year will make for a poor Christmas and a bloody one as all the “Newcomers” begin to suffer and take it out on the “greedy Europeans” in their cities. Why buy gas when its so easy to jack a car?

[kiryandil]

The United States became the world’s largest liquefied natural gas (LNG) exporter during the first half of 2022.....

While my personal COG [Cost of Gas] nearly tripled.

I'm America First.

You're America Last, out of hibernation.

The EuroPeeings can clean up their own mess, thank you very much.

[kiryandil]

LNG requires far more infrastructure investment and costs when does pipeline natural gas.

Especially now, with infrastructure become Fair Game...     

As for those quacking about "arbitrarily changed the contract terms", I would say that deploying sanctions to seize any Euros "paid" for natural gas supply [in effect stealing the natgas] is "arbitrarily changing the contract terms".

I'll type reeeaaaallll slow, so that the Canadian readers can understand that particular point.

[canuck_conservative]

Russia isn’t a reliable supplier

it is what it is

btw even if this war ended tomorrow, Europe isn’t going back to funding their enemy ... that’s idiotic

Russia will have its European revenues *permanently* reduced from now on ... get used to it