A roundup of news and commentary from NGI’s LNG Insight
- Gazprom PJSC said unusually high demand in Russia and elsewhere has made it difficult to maintain sufficient natural gas flows to Europe. Russian pipeline deliveries to the continent this year have been down, helping to keep supplies tight and prices up.
- A fire earlier this month at Gazprom’s Urengoy processing plant that disrupted output from a key region in Siberia has also impacted flows. European prices hit a record high Monday as flows on the Yamal-Europe pipeline declined sharply and Gazprom elected to take little of the firm transport capacity to Europe through Ukraine at an auction.
- European natural gas prices fell Tuesday as Russian supplies increased. LNG arrivals are finally seen increasing on higher prices, but the market is expected to remain tight.
- “Some marginal supply improvements are providing downside on the gas markets, said Schneider Electric analyst Wolfgang Haider on Tuesday. “Improved flows and LNG arrivals will need to be sustained for an extended period for any tangible corrections.”
- Brent crude also fell a fourth straight day Tuesday to settle at $69.03/bbl for October, the longest stretch of losses since March as the market remains concerned about demand loss amid the spread of the Covid-19 Delta variant. A majority of the world’s long-term LNG contracts are linked to crude prices.
© 2023 Natural Gas Intelligence. All rights reserved.
ISSN © 2577-9877 |