Gas prices in Europe did not fall after the return of supplies via Nord Stream


23 July 2022

Gas prices in Europe have not decreased after the resumption of supplies via Nord Stream. For a week now, the quotes have been steadily holding above $1,600 per thousand cubic meters.

 Spot gas prices in Europe against the backdrop of the restart of the Nord Stream after the prevention remained above $1,600 per thousand cubic meters. In Asia, prices are significantly lower - September futures on the JKM Platts index (Japan Korea Marker; reflects the spot market value of cargo delivered to Japan, South Korea, China and Taiwan) is trading at $1,360, Interfax reports.

 Europe continues to pump gas into underground storage facilities (UGS). UGS data, now regulated by law, is now one of the most important economic and political indicators for the region, reflecting the ability of the EU leadership to ensure energy security. At the moment, the reserves are 64.97%, according to data from the association Gas Infrastructure Europe.

 Since this year, the EU has introduced strict regulation of the use of underground storage facilities. By the beginning of the withdrawal season in 2022, the reserves should be at least 80% of the UGS capacity, in the next - 90%.

 European LNG receiving terminals are 68% loaded on average in July against 63% in June. So far, the region remains a premium market for LNG, as prices in Asia are slightly below European hubs.

 Europe's wind power generation averaged 10% Monday-Thursday, after last week's average of 11%, according to WindEurope data.