European Energy Prices Dive.
London, Monday, 16 January 2023
Due to the possibility of more LNG cargoes travelling to Europe, Dutch TTF natural gas futures dropped more than 12% to €56/MWh, the lowest price since September 2021. Importers are being forced to send their February and March shipments to Europe because of China's full stocks.
Gas storage levels in Europe have recently been hovering around 82%, up from 50% a year ago and significantly higher than the seasonal average of 70% over the past five years. An unusually mild winter has helped to reduce heating demand, while record LNG imports and an increase in renewable energy capacity have increased supplies.
In 2022, Europe was the world's largest consumer of liquefied natural gas, accounting for 24% of all LNG imports. Even while things appear to be improving, the forecast for 2023 is still grim because a cold spell could increase demand for heating.
(Report by: The Decision Maker - Energy editors)