A stable, good supply of LNG ensured that the European gas market calmed down a bit. However, uncertainty continues to prevail. And it shows in the prices. Although the price fluctuations are easing somewhat, the quotation still remains above the prices before the Russian invasion of Ukraine.
The rise in natural gas listing on the TTF futures market, due to the difficulties with the supply of Russian gas due to challenges in Ukraine, has been short-lived. Last week, the Ukrainian grid operator was forced to shut down compressor stations in the Lugansk region for safety reasons. About 33% of European gas imported from Russia enters our region via this route. As a result, the gas quotation on the TTF futures market rose to €12 per MWh on Thursday 106,70 May.
Concerns about deliveries linger over the market, but fears of immediate problems have faded quickly. Despite the grid operator reporting that the pumping station will not open until the Ukrainian authorities have regained full control of the area, the TTF futures market fell to its lowest point of the month on Monday, May 16, at €92,86 per MWh. The gas price has risen slightly in recent days and stands at €94,94 per MWh at the time of writing this article.
The warm weather and a good supply of LNG are mentioned as the most important factors for the falling price. Steps have been taken in particular in the reception of LNG. Gasunie announced that it would expand its LNG reception capacity with two floating terminals in Eemshaven. Both will arrive in August and be operational in the fall. In addition to expansion in the Eemshaven, the terminal on the Maasvlakte will also be optimised. The measures should lead to a doubling of the Dutch processing capacity for LNG.
Brussels wants to get rid of Moscow
The European Commission presented today (May 18) a plan to end energy dependency from Russia. €210 billion has been made available for this. The goal is to be independent from fossil fuels from Russia by 2027. Russia now supplies about 40% of the gas used in the European Union and just under 30% of the oil. Due to the war in Ukraine, member states are struggling with this dominant position of Russia in the European energy market.
The European Commission's package of measures consists of guidelines and recommendations for Member States in saving energy, adapting the infrastructure and developing renewable energy sources. In addition, the climate targets for 2030 will also be tightened. The European Commission wants to use the funds in the corona recovery fund and sell extra CO2 in the coming years to finance the plans.