MOSCOW, 29 Aug — PRIME. Receiving LNG terminals in North-Western Europe will be used to the maximum in the near future, and this will guarantee the region in the fall and winter some, albeit not covering all needs, gas volume, Sergey Kolobanov, deputy head of the Economics of Fuel and Energy Complex department, told RIA Novosti .
He also noted that fears related to restrictions on LNG supplies have practically ceased to influence European pricing. In his opinion, due to high LNG prices, a certain equilibrium state has been achieved in the global market. Some Asian countries can no longer buy gas at such high prices and, despite the limited supply, there are “conditionally superfluous” volumes that can be redirected to Europe, he explained.
Kolobanov believes that in North-West Europe, which has the greatest problems with pipeline supplies, there are still significant restrictions on LNG intake, which is why suppliers practically compete for regasification capacities. In view of this, for example, last week there were record price discounts for October deliveries of liquefied gas to the price level of the “pipeline” hub TTF, he noted.
Competition for regasification capacities in Europe, in turn, has a restraining effect on “pipeline” prices within Europe and is one of the factors that do not contribute to a significant and prolonged increase in gas prices in the region, although individual bursts associated with regular supply problems , may well be, Kolobanov concluded.
Gas futures prices in Europe, according to data from the London ICE exchange, after jumping on Friday – for the first time since March – above $3,500 per thousand cubic meters, lost more than 20% at auction on Monday, fell below $2,800, and on Tuesday – 10%, up to almost $2,500.