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Gas supplies to Europe are holding firm despite ongoing troubles at the Nord Stream 1 pipeline, leaving the market in equilibrium, albeit temporarily.
That’s according to Rystad Energy analyst Lu Ming Pang, who made the statement in a market note sent to Rigzone late Wednesday. The Rystad analyst outlined in the note that Russian pipeline flows from Nord Stream 1 were around 63 million cubic meters per day, while pipeline flows from the Ukraine transit were around 37 million cubic meters per day.
“Despite being short of the 150 million cubic meters per day level before Nord Stream 1 issues, gas flows have remained stable,” Pang said in the note.
“Market participants are still wary of further supply cuts and elevated prices though, as annual maintenance is planned for the pipeline from July 11 to July 21,” Pang added.
In the note, Pang also warned that, in France, the CGT trade union announced that more strikes will be held this week, a development the analyst revealed could possibly impact LNG and gas storage facilities. Flows of gas from LNG terminals, post-regasification, in French facilities have not yet seen a noticeable disruption based on non-maintenance factors, however, Pang stated.
Looking at Germany, Pang outlined in the note that concerns had arisen over the start-up of LNG terminals.
“Concerns have arisen over whether there may even be two LNG terminals started up by next year,” Pang said in the note.
“The country had planned for several LNG import terminals by using floating storage regasification units (FSRU) to hasten the start-up process. However, it has been reported that since no final investment decision has been made on the stationary terminals, construction has not yet started,” Pang added.
In a separate statement sent to Rigzone on Monday, Pang noted that European countries need to make every molecule of gas count in the coming weeks as potential decreases in flows and maintenance of critical infrastructure will only heighten the supply shortage.
“Countries are exploring creative ways to counter this, including incentivizing consumers to use less gas in a bid to increase storage levels before the gas-hungry winter season,” Pang said in the Monday statement.
In a statement sent to Rigzone on June 23, Rystad Senior Vice President Carlos Torres Diaz highlighted that European power prices had jumped as a result of lower gas supplies and renewed concerns for the winter balance.
“Spot power prices have increased in tandem with European gas prices as supply disruptions are creating a tighter European balance,” Diaz said in the statement.
