The price of gas in the past seven days was about €5 lower than last week. Because of warmer weather, the demand for gas decreased. In addition, Statistics Netherlands determines how much gas will be consumed in 2022 and the government will reduce the advance on the TEK, the subsidy scheme for energy-intensive SMEs.
The price of the TTF fluctuated approximately between €50 and €55 this week. On Friday, February 10, the TTF was trading at €53,95. Gas prices fell sharply over the weekend. On Monday, February 13, the price of gas was 'only' €51,71, the lowest price since September 1, 2021. On Wednesday, February 15, the gas price rose to the highest point of the week, at a level of €54,52.
The lower gas price is mainly the result of favorable weather. For the third time since autumn, temperatures in Europe are much higher than average. It is expected that less gas will be extracted from European supplies for the time being. According to the latest reports, the average filling level of European gas reserves is currently 66%. The ten-year average at this time of year is 54%. According to analysts, it is now almost certain that we will be able to fill the gas reserves almost completely again next year.
In addition, developments in the United States provide a better outlook. For the first time since June, a full LNG tanker left the port of America's second largest LNG exporter Freeport-LNG. Freeport has requested permission to operate at full capacity again. If the request is granted, the global availability of LNG will increase substantially. The company is able to convert approximately 2% of US natural gas into LNG.
Gas consumption will be significantly lower in 2022
In addition, the Central Bureau of Statistics (CBS) has published final savings figures for 2022. Compared to 2021, Dutch gas consumption has decreased by 25%, CBS reports. In industry, the gas price has fallen by a quarter. Companies in the petrochemical industry in particular consumed a lot less gas last year. Due to the large production of renewable energy and the addition of coal-fired power stations, gas consumption for Dutch electricity production fell by 12%.
Household consumption fell by a quarter, but according to Statistics Netherlands, this percentage is colored by large temperature differences between the two years. Statistics Netherlands estimates that household consumption fell by approximately 15% compared to 2021 due to higher prices.
Advance payment on the TEK has been reduced
Finally, the Netherlands Enterprise Agency (RVO) amended the Energy Cost Allowance for energy-intensive SMEs (TEK). To ensure that the scheme does not come too late, companies in the original scheme could receive an advance of 60% on their subsidy. Because energy prices have fallen significantly in recent months, there is fear that the advance payment from the TEK is higher than the final subsidy. To prevent entrepreneurs from having to refund large amounts, the ministry has decided to reduce the advance payment to 50%.
Companies that spend at least 7% of their turnover on energy can use the TEK. Those who are eligible for the subsidy will be reimbursed for 50% of the energy costs above €1,19/m³ for gas and €0,35/kWh. The scheme will be opened in the first quarter, but a specific date has not yet been set. The scheme is currently still being assessed by the European Union.