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Europe now has so much natural gas that prices just dipped below zero

We Never Know

No Slack
For youns who live there, whats the story?

"Europe has more natural gas than it knows what to do with. So much, in fact, that spot prices briefly went negative earlier this week.

For months, officials have warned of an energy crisis this winter as Russia — once the region’s biggest supplier of natural gas — slashed supplies in retaliation for sanctions Europe imposed over its invasion of Ukraine.

Now, EU gas storage facilities are close to full, tankers carrying liquefied natural gas (LNG) are lining up at ports, unable to unload their cargoes, and prices are tumbling.

The price of benchmark European natural gas futures has dropped 20% since last Thursday, and by more than 70% since hitting a record high in late August. On Monday, Dutch gas spot prices for delivery within an hour — which reflect real time European market conditions — dipped below €0, according to data from the Intercontinental Exchange."

Europe now has so much natural gas that prices just dipped below zero - KTVZ
 

exchemist

Veteran Member
For youns who live there, whats the story?

"Europe has more natural gas than it knows what to do with. So much, in fact, that spot prices briefly went negative earlier this week.

For months, officials have warned of an energy crisis this winter as Russia — once the region’s biggest supplier of natural gas — slashed supplies in retaliation for sanctions Europe imposed over its invasion of Ukraine.

Now, EU gas storage facilities are close to full, tankers carrying liquefied natural gas (LNG) are lining up at ports, unable to unload their cargoes, and prices are tumbling.

The price of benchmark European natural gas futures has dropped 20% since last Thursday, and by more than 70% since hitting a record high in late August. On Monday, Dutch gas spot prices for delivery within an hour — which reflect real time European market conditions — dipped below €0, according to data from the Intercontinental Exchange."

Europe now has so much natural gas that prices just dipped below zero - KTVZ
All that means is that, at one point last week, there was nowhere to put any more gas that came in. That is driven by the limits of storage capacity and also re-gasification capacity. It is not a sign that Europe has plenty of gas now for the coming winter, more of a technical glitch. The futures price is a better reflection of the longer term situation, obviously. But this too has fallen a lot, indicating the strides that have been made in Europe to replace Russian supplies.

A lot will depend on how cold the winter is. There will be a couple more re-gasification facilities coming on stream in the next couple of months, at which point LNG can be imported at a faster rate.
 

We Never Know

No Slack
All that means is that, at one point last week, there was nowhere to put any more gas that came in. That is driven by the limits of storage capacity and also re-gasification capacity. It is not a sign that Europe has plenty of gas now for the coming winter, more of a technical glitch. The futures price is a better reflection of the longer term situation, obviously. But this too has fallen a lot, indicating the strides that have been made in Europe to replace Russian supplies.

A lot will depend on how cold the winter is. There will be a couple more re-gasification facilities coming on stream in the next couple of months, at which point LNG can be imported at a faster rate.

Thank you. That's why I asked "For youns who live there, whats the story?"
 
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