The supply of gas from Russia is difficult, but Europe is starting to get used to it. Although the price remains relatively high, there are now more and more suppliers of gas.
The price for natural gas has fallen in recent days. On Friday, January 14, the TTF quotation was €86,97 per MWh. That is €19 per MWh on Wednesday, January 73,11. Analysts attribute the lower natural gas price to various developments. First of all, the supply of LNG from the United States. Sources report, based on preliminary data, that the European Union has already supplied approximately five times as much LNG this month, compared to gas from the pipelines from Russia. The high European price makes our continent a lucrative market for exporters.
In addition to the United States, Norway has also further opened the gas tap to the European Union. Germany brings relief by bringing more from storage to market. Acute shortages are thus dealt with. That stock will just have to be replenished later in the year. This is already visible on the futures market contracts for the summer, which now hardly show the usual summer dip. The relatively mild winter weather also helps: the demand for gas for heating is lower. And in recent days there has also been more supply of wind energy. The demand for use in power stations therefore decreased.
Geopolitical game
In the meantime, the supply of gas from Russia continues to be difficult. Reuters reports that for the thirtieth day in a row, gas flows from Germany to Poland via the Yamal pipeline. Normally, this pipeline supplies about 17% of the European gas supply. Reuters expects that even more gas will be pumped to Germany via the Yamal this month. Gazprom has already purchased capacity for this purpose. No space has yet been reserved for February. Russia's exports in January are already 41% behind the same period last year. According to Citigroup analysts, Gazprom's focus is on fulfilling long-term gas contracts in Europe and supplying the domestic market with sufficient gas.
Tensions in the border area between Russia and Ukraine are keeping the market busy. German Chancellor Olaf Scholz announced in a meeting on Tuesday, January 18, that if Russia invades Ukraine, "it will come at a high price and everything must be discussed." Scholz previously announced that 'Nord Stream 2' is also included. The organization announced today that the fact that Nord Stream 2 has not yet been approved is bad for European gas users and the economic recovery after the corona crisis.