ΦΥΣΙΚΟ ΑΕΡΙΟ
- 27 Apr 2023
- international
European gas prices rose as strikes continued in France against a reform of the country's pension system and ahead of a cold wave expected to hit much of the continent.
Benchmark Dutch futures rose as much as 6.3%, while so far they are up about 9% this week.
At the same time, officials are warning that the recent supply squeeze may not be over yet, as the critical period to replenish stocks begins - this time without significant flows from Russia.
Strikes at three French LNG terminals operated by Elengy SA remain in place until Thursday. Electricite de France SA also continues to struggle with its nuclear reactors, with only 57% of capacity available, according to Bloomberg calculations.
Next week, Europe will face a cold snap as the official heating season draws to a close after a relatively mild winter. However, prolonged use of natural gas for heating is increasing pressure on supplies.
However, storage levels remain high for the season. Occupancy is at nearly 56%, according to Gas Infrastructure Europe data. Avoiding a crisis next winter depends on success in replenishing stocks.
The IEA predicts a 10% increase in demand for industrial use
It is recalled that for Europe as a whole, industrial use of natural gas fell by around 20% last year, contributing half to the overall drop in demand, according to the International Energy Agency (IEA). For this year, the IEA expects an increase in demand of around 10%.
Despite a 90% plunge from extreme levels of €340 per megawatt hour last August, natural gas prices remain higher than their historical average.
This means that some demand may have been lost forever as industries moved parts of their production to other parts of the world that have lower energy costs.
