Posted on 10/10/2022 11:39:25 AM PDT by BeauBo
On Monday, Europe’s natural gas prices fell to the lowest level in three months thanks to mild weather and a high level of LNG imports... hitting an intra-day low of $140 per megawatt-hour (down from $350 on August 26th, the lowest since July 1st). Gas storage in the EU is now at more than 90% and the bloc has managed to reduce its gas consumption by 10%.
(Excerpt) Read more at oilprice.com ...
But natural gas seems to be well over the hump of the war shock, and Europe transitioning away from Russian supply. Hungary is the only EU Nation still currently accepting natural gas from Russia - far ahead of the planned transition schedule, due to Russian cutoffs, and pipeline problems.
Who cares if it is unavailable anyway.
Problem - natural gas is priced by volume, typically per thousands of cubic feet. "Megawatt hour" is a measure of electricity.
Credibility is destroyed.
I’ve never seen natural gas measured in “megawatt-hours” before. Electricity, yes, but natural gas, no.
As I said, the price rise and rationing are coming here. Never let a crisis go to waste.
“I’ve never seen natural gas measured in “megawatt-hours””
It is how they price it for trade in Europe (Dutch TTF).
Price controls. Wait for it.
That’s how various energy sources are compared in prices - by electricity produced. There is a website that would allow you to calculate between MWh and cubic meter: https://www.calculat.org/en/energy-fuel/gas-consumption.html
Perhaps, perhaps not, but it will be a pretext for “hearings” about “price-gouging” and “windfall profits”.
59 Down from 70. But still high from Jan 22 pre war of 38.
... also, storage “90% full” is meaningless when that will only get you through about 75% of the winter. And with no real ability to replace that declining storage, the price for LNG coming in by boat will get bid up to the stratosphere.
And the conclusion will be, we need to stop these gougers with price controls. And then there will be shortages, and hence rationing. This cycle repeats.
We’re also going to wear sweaters and use less gas. Get Putin out of Ukraine
If the price is falling, its available.
Storage alone wont, but there will be ongoing and increasing deliveries going on the whole time.
And this is as I’ve been telling you guys, gas infrastructure and supply has been building out very quickly. And that is besides everything else thats going on in power generation.
The world is very resilient at adapting to such situations. Markets and engineering are wonderful things, if permitted to work.
Winter is still coming…. see how the Europeans are doing in January. My prediction is that many will be shivering in the dark.
Price controls don’t exist, even the Demagogic Party knows this, but they’ll sanctimoniously raise taxes (on us, because oil co’s don’t print money) to “punish” “them” — y’know, for struggling to make a living on a short-shelf-life product family.
I wonder how long that bad boy could keep my grill going.
Thanks for the correction; I’d never heard of that before.
Even when they (Europeans) talk about physical volume, they tend to use cubic meters, rather than cubic feet. Our markets (US and European) were long pretty separate, but from here on out, we are likely going to be much more integrated.
This year, for the first time ever, Europeans bought more US LNG than Russian pipeline gas. The Europeans are engaging in an epic LNG terminal construction binge, and have signed big new contracts with US companies to supply even more LNG in the future.
Next month, when the huge Freeport LNG export terminal in Texas comes back on line, our exports to Europe are set to jump significantly.
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