Europe’s increased dependence on liquefied natural gas means high prices are needed all year round to ensure the region gets all the fuel it wants, Bank of America Corp. said.
“Europe is now over-reliant on LNG for its energy needs, and likely requires around 300 million cubic meters a day” in imports, BofA commodity strategist Francisco Blanch said in a note. “Prices must remain robust throughout the year or risk a rapid shift in the inventory trajectory.”
Russia’s invasion of Ukraine last year upended gas markets around the world, driving up prices and stoking concerns about security of supply. Europe is rushing to replace Russian piped gas with LNG, but must compete for cargoes with Asia, where nations are signing long-term deals to avoid future shortfalls.
Prices at the Title Transfer Facility — the European benchmark — have sunk almost 90% from last year’s high following a mild winter and a drop in demand. They’re now finding a floor, and need to exceed €35 a megawatt-hour to lure enough fuel to the continent, BofA said. Gas traded near €34 on Wednesday.
“Natural gas remains a key source of power generation, and Europe cannot afford to meet its energy needs if LNG imports were to plummet again as a result of low prices,” the bank said. “TTF price risk likely will remain concentrated in both winter and summer,” when stockpiles fall and rise.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Chevron faces two-week total strike at Australia LNG projectsBy Renju Jose SYDNEY (Reuters) - Workers at Chevron's Gorgon and Wheatstone liquefied natural gas (LNG) projects in Australia plan a total strike for ...
Lire la suite »
Chevron Australia LNG Workers Plan Full Strikes From Sept. 14Chevron Corp. liquefied natural gas workers in Australia threatened two weeks of 24-hour rolling outages at two major export plants from mid-September, in an escalation of the dispute that threatens global fuel supply.
Lire la suite »
Chevron Says Seeking Solution as 24-Hour LNG Strikes Planned(Bloomberg) -- Chevron Corp. liquefied natural gas workers in Australia threatened two weeks of 24-hour rolling outages at two major export plants from mid-September, in an escalation of a dispute that threatens global fuel supply.Most Read from BloombergHuawei Teardown Shows Chip Breakthrough in Blow to US SanctionsMercedes Bets on Range Boost in Swipe at Tesla’s EV LeadWhy China Is Avoiding Using ‘Bazooka’ to Spur EconomyDiamond Prices Are in Free Fall in One Key Corner of the MarketThe worker
Lire la suite »
Shell Considers New LNG Projects to Meet Future Demand GrowthShell Plc is exploring a number of liquefied natural gas export projects in North America and Africa as the company expects strong demand for the fuel during the energy transition.
Lire la suite »
What a hike in XRP’s network activity means for investorsXRP’s network growth, after plummeting a few weeks ago, started to recover as it crossed 3,000. The token’s price action, however, remained on the negative end...
Lire la suite »
Back to School in Ukraine Means Heading to Subway Bomb SheltersChildren in Ukraine’s second-largest city headed back to school by venturing deep underground into subway stations so they can take classes away from the risk of Russian airstrikes.
Lire la suite »