European Gas Prices Ease as Stockpiles and LNG Imports Climb

  • In Business
  • 2022-10-07 07:53:00Z
  • By Bloomberg

(Bloomberg) -- European natural gas prices declined amid growing stockpiles and imports of liquefied natural gas, while leaders from the region continue to seek ways to ease an unprecedented energy crisis.

Most Read from Bloomberg

  • Biden Says Putin Threats Real, Could Spark Nuclear 'Armageddon'

  • Kremlin Lets State Media Tell Some Truths About Putin's Stalling War

  • Musk's Twitter Takeover Hits Snag Over Debt-Financing Issue

  • Nord Stream Leaks Caused by Detonations in Sign of Sabotage

  • Trump Says US Agency Packed Top-Secret Documents. These Emails Suggest Otherwise.

Gas storage levels on the continent are now about 90% full -- higher than last year, but still below inventories in October of 2019 and 2020 -- data from Gas Infrastructure Europe show.

Meanwhile, the European Union is considering a temporary limit on gas prices to ward off a potential recession, though it's not yet clear what kind of mechanism they'll consider. Industry is concerned that such intervention may hinder supplies to Europe at a time when it needs to replace flows that would ordinarily come from Russia.

European imports of liquefied natural gas may jump by 45-50% this year, according to Bloomberg Intelligence. However, LNG may only be able to replace about 30% of pipeline shipments from Russia, BI analysts Talon Custer and Patricio Alvarez said in a research note.

Also See: Four EU Nations Propose Gas Price 'Corridor' to Cool Market

Russian gas exports to the region have diminished to a fraction of their levels in the fallout of the country's invasion of Ukraine in February. While volumes are still passing through Ukraine, other routes have been halted, including the key Nord Stream link to Germany.

A cooler-than-expected winter would accelerate draw-down at gas storage facilities, leaving the continent more vulnerable. Temperatures across northwest Europe are expected to drop in the second half of October, forecaster Maxar said in a report.

Dutch front-month gas, a European benchmark, traded 8.4% lower at 161 euros a megawatt-hour by 9:50 a.m. in Amsterdam. The UK equivalent traded 3% higher.

Most Read from Bloomberg Businessweek

  • The Massive Gas Field That Europe Can't Use

  • Even After $100 Billion, Self-Driving Cars Are Going Nowhere

  • 'I Am Energy': Inside the Bang Billionaire's Reeling Empire

  • Millions in Cryptocurrency Vanished as Agents Watched Helplessly

©2022 Bloomberg L.P.


More Related News

Taiwan Elections Set Stage for Tighter Presidential Race in 2024
Taiwan Elections Set Stage for Tighter Presidential Race in 2024

(Bloomberg) -- Taiwan is set for a more contentious presidential race focused on rising tensions with China, after low turnout in local elections handed...

FTX Chaos Prompts Reckoning on Dubai
FTX Chaos Prompts Reckoning on Dubai's Embrace of Crypto Giants

(Bloomberg) -- Most Read from BloombergNext Covid-19 Strain May be More Dangerous, Lab Study ShowsChevron to Resume Venezuela Oil Output as US Eases...

US Jobs Report Likely to Show Subtle Progress for Fed: Eco Week
US Jobs Report Likely to Show Subtle Progress for Fed: Eco Week

(Bloomberg) -- The latest reading of the US labor market on Friday is expected to show job growth on more of the downward glide path sought by Federal...

Philippines Sees Debt-to-GDP Ratio Falling to 50% by 2028
Philippines Sees Debt-to-GDP Ratio Falling to 50% by 2028

(Bloomberg) -- The Philippines expects the government's debt-to-gross domestic product ratio to decline to about 50% by 2028 due to strong economic growth...

Venezuela Factions Restart Talks, Eyeing Sanctions Relief
Venezuela Factions Restart Talks, Eyeing Sanctions Relief

(Bloomberg) -- Venezuela's battling political factions restarted negotiations on Saturday in Mexico, signing a rare deal to work together on a humanitarian...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Business