A roundup of news and commentary from NGI’s LNG Insight
- Gazprom PJSC did not book any of the 63.7 million cubic meters/day of interruptible natural gas pipeline capacity through Ukraine at a monthly auction on Tuesday. It was the fourth consecutive month that Gazprom did not take additional volumes. The company has been booking additional firm capacity to move supplies via Ukraine to Europe. The company also has annual volumes contracted through the rival country until 2024.
- “Russia is most likely keen to ramp up Nord Stream 2 flows as soon as possible to avoid nominating capacity via the costlier Ukrainian and Polish routes, coincidentally driving European gas prices higher amid depleted storages and high demand,” said Schneider Electric analyst Balint Balazs.
- Gazprom’s decision further tightens the European market. Both Dutch futures and the UK benchmark closed higher on Tuesday. The UK’s National Balancing Point hit a 16-year high during Tuesday trading.
- Flows have also been cut from Norway’s Troll gas field due to unplanned outages, curbing output from a key European supply source. Meanwhile, Japan-Korea Marker spot prices edged closer to $15/MMBtu Tuesday as buyers continue to demand LNG cargoes amid competition with Europe.
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