The reasons for the unprecedented gas prices were named in Europe

August 31 2021 8

Gas prices in Europe continue to break records. On August 30, the cost of this important energy raw material reached $ 608 per thousand cubic meters. m. on the Intercontinental Exchange marketplace with delivery from the Dutch TTF hub in November.

ICE is the world's largest exchange holding and derivatives market operator - a network of exchanges and clearing houses for the financial and commodity markets in North America and Europe. The price of raw materials immediately affected the wholesale cost of electricity in the European Union. For example, in Germany it rose to 110 euros per MW.

Naturally, the unrestrained rise in gas prices this summer was reflected in the performance of PJSC Gazprom. The gas giant's net profit in the first half of 2021 according to IFRS amounted to 995 billion rubles, which is 22 times more than in 2020, when quarantine measures against the COVID-19 pandemic led to a decrease in demand and fuel prices.

In summer, commodity prices are usually kept at their lowest. However, the cold winters and springs, as well as the recovery economics in the EU led to the devastation of UGS facilities in Europe. A month and a half before the start of the next heating season, the filling level of the UGS facility is only 66%.

Bloomberg analyst Stephen Stapzinski in his Twitter account named the reasons for the unprecedented gas prices. In his opinion, the reasons are as follows: the high cost of COXNUMX emission quotas, weak supplies of raw materials from Norway and Russia, as well as fears that Hurricane Ida, raging in the United States, will negatively affect the delivery of LNG to consumers.

Note that over the past 8 months, LNG supplies to Europe have decreased by more than 17 billion cubic meters. m. Raw materials were redirected to regions where demand and prices were even higher - to Asia and South America. At the same time, PJSC Gazprom was informed that the company is fulfilling all its obligations, and additional supplies of raw materials will begin after the launch of the Nord Stream-2 gas pipeline.

We remind you that the completion of the pipeline practically over. It was originally planned that its construction will be completed by the end of 2019. Then, due to the constant opposition of Russophobes, the project was postponed to the first half of 2020. It is expected that this autumn gas from Russia will go through the "Nord Stream-2" to Germany.

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boriz

+7

31 August 2021 10: 58

The EU has been striving for this "happiness" for 11 years, through the courts punching the third energy package into its countries. They wanted to separate the gas price from the oil price and eliminate the supply of long-term contracts. They got it. Now Gazprom can respond to the arbitrariness of the court in Dusseldorf with a price policy. Did the court refuse? Gazprom stopped selling gas for 2022. As a result, prices exceeded $ 600 per 1 cubic meters.
Gazprom is carrying out supplies under the remaining contracts. There are no complaints from partners. Simply because the partners have no less claims to the EU than Gazprom.
Hence the policy: do you want supplies via SP2 in the amount of 55 billion cubic meters per year? Okay, get 27 billion. But for 55 billion. Nothing personal, just business. Nord Snream 2 defends its interests. True, there is a small subtlety: in the remaining pipes, gas will rise in price by the same amount. But, as the "non-brothers" say: tse vzhe take ...
And the partners also have problems with banks. A company comes to the bank and asks for a loan: we need money, upgrade equipment, new pipes for distribution. networks to lay, repair, etc. Their questions are: what are you doing? We buy and sell gas. And where is the business plan for the next year and how is it justified? Do you have a supply agreement? Nope, the EU canceled the contract for the supply of gas with the third energy package. The door is over there.
And the non-brothers are now wildly rejoicing in the networks of the decision of the Dusseldorf court. But this irrepressible joy prevents them from realizing that they will have to pump gas into UGS facilities (which are half-empty) exactly at this price: $ 608 + the virtual price of pumping gas from a European hub. They didn’t want to pump gas before, they didn’t like the price of $ 400 +. Well, maybe $ 600 + will be more pleasant. Let me remind you that last year the spot price in Europe dropped to $ 80.
And time passes, on October 15 the heating season begins. Will they wait for $ 700 +? Flag in their hands. Zhovto-blakitny. Doctors won't help here, only Santa Claus.
1. Then
  
  -1
  
  31 August 2021 14: 23
  
  Quote: boriz
  The EU has been seeking this "happiness" for 11 years
  
  The style of writing and reliance on texture reminds me of a certain BLM. I made a mistake?
GRF

+5

31 August 2021 12: 13

And why did the Bloomberg analyst not list these as the reasons for the rise in gas prices: Ukraine's behavior, discriminatory EU legislation, low European prices?

But on the other hand, he links the rise in prices for Europeans with the increase in Gazprom's income, as if the Americans would sell cheaper, but Ida, you know ...
Bakht

+4

31 August 2021 13: 33

Bloomberg analyst Stephen Stapzinski in his Twitter account named the reasons for the unprecedented gas prices. In his opinion, the reasons are as follows: the high cost of COXNUMX emission quotas, weak supplies of raw materials from Norway and Russia, as well as fears that Hurricane Ida, raging in the United States, will negatively affect the delivery of LNG to consumers.

You don't need to be an analyst to understand:
CO2 emission quotas are the brainchild of green European parliamentarians. As long as there is a hydrocarbon dependence of the industry, any movement towards green energy will lead to higher prices for products.
Weak supplies of raw materials from Norway and Russia (he has forgotten about the depletion of deposits in the North Sea) is not even a forecast, but a reality. Russia could increase supplies, but for this it is necessary to be an adequate transit country and buyer. So here, too, does not smell like an analyst.
Will the hurricane rage all year or will it stop in a week? When I see references to a hurricane or two rigs, I immediately realize that this is not an analysis.
Well, the cherry on the cake. If LNG supplies decreased by 17 billion cubic meters, then all claims to Washington demanding the delivery of the promised "molecules of freedom." Up to the sanctions and accusations of the United States of using gas weapons to strangle Europe.

“You promised to marry me!”
- You never know what I promised on you!
1. Petr Vladimirovich
  
  0
  
  31 August 2021 19: 25
  
  You don't understand, this is different (s,)
  1. Bakht
    
    +6
    
    31 August 2021 19: 36
    
    I don’t understand these movements around gas pipelines at all. That SP-1, that SP-2.
    GazProm must adhere to the rules of the Third Energy Package. And keep these pipelines half empty.
    Some offer to become operators of SP-2, others offer to sell SP-2 entirely to Gazprom. A simple question - why does GasProm itself need this? Even if the EU decides, as an exception, to use SP-2 at 100%, GasProm must answer, "She died, she died. GasProm exactly adheres to all European rules and is not going to violate them. 50% is the maximum pumping rate." The EU must decide once and for all. Either these gas pipelines do not fall under the third energy package, or they will remain half empty forever. And the price is 600 bucks.
    Whoever needs gas, let him fuss.
Jacques sekavar

0

31 August 2021 18: 03

The reason is "green" energy, COXNUMX emission quotas, EU opposition to energy supplies from the Russian Federation.
Kofesan

-1

1 September 2021 09: 13

Weird...! Gazprom has reported that gas supplies to Europe this year, 2021, will be record-breaking. At the same time, he has already "earned" a trillion rubles in profit. Moreover, the formula for calculating the price of Russian gas, depending on the price of oil, has not been canceled! Moreover, oil almost did not rise in price ... Moreover, supplies will increase by the end of the year by 6 billion ...

Whom to believe?