German storage well filled
Gas price rises – possible strike at the largest LNG exporter
08/22/2023, 4:50 p.m
In Australia, a strike at natural gas facilities is conceivable. As the country is the largest LNG exporter, the consequences would be felt worldwide. In the past few days, prices have already been rising. However, the German storage facilities are already considerably fuller than a year ago.
The European natural gas price is rising again significantly. On the Dutch trading platform TTF, the megawatt hour has increased in price by 6.5 percent to 43.98 euros. Market participants, on the other hand, point to concerns about impending strikes at Australian natural gas facilities such as supplier Woodside Energy, which could result in falling supply. Although the CEO of Woodside speaks of progress in the negotiations, the risk of a strike has not yet been banned.
Yesterday, Monday, the price of European natural gas on the Amsterdam stock exchange rose by eleven percent compared to Friday. In the meantime, the increase had even amounted to almost 18 percent. The analysts at US bank Goldman Sachs see the European gas price skyrocketing to over 100 euros if a strike leads to a maximum loss of gas supplies. Workers at three gas facilities with a total natural gas export capacity of 150 million cubic meters per day are considering a walkout. But neither a strike nor the failure of all liquid gas deliveries are currently certain. Australia is the world’s largest exporter of liquefied natural gas (LNG). A supply disruption could affect 10 percent of global LNG exports.
Most recently, analyst Carsten Fritsch from Commerzbank pointed out that less natural gas could also come onto the market from Norway in the short term. Further maintenance work in an important gas field was required there at the end of the month. Another market participant pointed out that US natural gas futures had recently risen in view of the heat wave and the resulting increase in energy demand.
Meanwhile, according to the latest data from the European storage association GIE, the fill level in all German storage facilities was 92.74 percent last Saturday. The gas reserves have been replenished for months and are well above the comparative value of the previous year. The reasons for the higher level include imports of liquid gas.
Despite the surge, the price of European natural gas is still well below the level it was just before the start of the war in Ukraine in February 2022. A record price of more than 300 euros per MWh was paid last summer.