A relatively large supply of LNG and the forecast of warmer weather are pushing the problems with the supply of Russian gas to the background in the gas market. In the longer term, developments in the relationship between the EU and Russia will continue to occupy the minds. Certainly now that sanctions that also affect the energy sector are no longer out of the question.
The price of natural gas on the TTF futures market peaked on Thursday 31 March at €125,91 per MWh. Today (April 6) the gas quotation is under pressure for the fourth day in a row. At the time of writing this article, the current rate is €108,50 per MWh. An important reason for the falling gas price is the ample supply of LNG. For the coming months, European prices will still be well above Asian prices, the other major sales area on the world market. However, the gap between European and Asian prices is narrowing.
The European market has continued to calm down due to the strong winds of recent days. As a result, more power was generated via wind turbines, while the gas-fired power stations were able to shut down. The wind will decrease in the coming days, according to the weather reports. But that will be partly offset by milder temperatures forecast for after the weekend.
Russians deliver by appointment
The uncertainties surrounding gas supplies from Russia continue to hang over the market like a dark cloud. The state gas company Gazprom announces that it continues to meet the demand from European customers, via the pipelines through Ukraine. It has reserved capacity for more than 100 million cubic meters for today. That is roughly the same as yesterday (April 5). German gas exports to Poland - via the Yamal pipeline - have stopped, according to data from network operator Cascade. The pipeline runs from Russia and Belarus to Poland and Germany. In recent months, the pipeline has been used to transport gas from Germany to Poland.
In the new sanctions package, which is being prepared by the European Union, the energy sector is no longer unaffected. The arrows are now focused on the import of coal. The German Finance Minister, Christian Lindner, also wants to quickly phase out the import of Russian oil and gas, but that is not immediately possible. He tells this to the weekly newspaper Die Zeit. "If I followed my heart, there would be an embargo immediately." According to Lindner, normal economic relations cannot be maintained with Russia. Germany is therefore striving to phase out the import of oil and gas from Russia. There is, however, a risk to economic and social stability in Germany.