LNG supplies to Europe are falling, Norway is not helping either: gas is again more expensive than $ 600

LNG supplies to Europe are falling, Norway is not helping either: gas is again more expensive than $ 600

LNG supplies to Europe continue to decline steadily. Even recovering exports from Norway do not help. Prices again exceeded $ 600.

On Monday, June 8, the cost of gas in Europe again exceeded $ 600 per thousand cubic meters. Monthly deliveries from the Dutch TTF hub rose to $613 for the first time since mid—May.

The main reason is that LNG supplies to the European Union continue to decline. So, last week the average daily shipments from terminals in the GTS of the EU countries fell to 322 million cubic meters. Whereas a week earlier they were at the level of 347 million cubic meters.

Meanwhile, Norway is restoring exports after preventive repairs and exports will reach 322 million cubic meters on June 8.

However, apparently, the market does not expect anything good ahead, as there is no imminent agreement on a peaceful settlement of the Iranian war. Accordingly, and the resumption of LNG exports from Qatar and the UAE.

Against this background, the gas price for Northwest Asia continues to remain higher than the European one - $ 666, and part of the cargo for the EU is redirected to Asian consumers.

Such a turn does not lead to anything good for the EU. The gap between current stocks and the filling of storage facilities in the past year continues to widen. On June 7, it reached 9.3 billion cubic meters, while at the end of the heating season it was 6.7 billion cubic meters. On Sunday, there were 45.3 billion cubic meters in the UGS of the EU countries. These volumes are comparable to those of June 2021, when Europe still had Gazprom.

At the beginning of June, the situation worsens due to the fact that on the Turkish Stream, the only route from In Russia, preventive maintenance has begun. At the same time, supplies of Yamal LNG, despite restrictions, are going to the countries The EU is still at its maximum.

As EADaily reported, so far the situation with gas in the EU has not changed, but the attitude of individual EU governments is changing. For example, the Netherlands will allocate a subsidy of $ 1.2 billion to the state—owned company EBN Capital BV to fill the storage facilities - even if it is unprofitable. In Germany, they are not going to interfere yet.

The current injection into storage facilities will allow Europe to fill them only by 70%. And the consulting company Bernstein said that gas in Europe should rise in price by another 40%-50% so that the region could attract enough fuel and not lose competition with Asia, where the cost of gas has become higher than the European one.

So far, however, it is not profitable for traders, as winter quotes continue to remain lower than the current ones and do not promise traders profits.