Mini Energy Report February 23
- Gas and Electricity Wholesale prices are lower.
- EU Gas Storage levels are a high, 64% full.
- Large numbers of LNG shipments to Europe.
Since our last Energy Report, Gas and Electricity Year Ahead Wholesale prices are lower. Record numbers of LNG deliveries are being made to Europe to replace those Gas supplies previously from Russia. The US Freeport LNG terminal has started making deliveries, although it is not expected to be fully operational for at least another month. There will likely be an increased demand for LNG this year from Asia, largely due to China’s removal of COVID restrictions, which may impact on deliveries to us. EU Gas Storage levels are currently at 64% full, much higher than had been feared, when commercial restrictions on Gas use was thought a possibility. Energy markets are already factoring in the need to fill Storage to the 90% target by November. The recent milder temperatures have reduced the demand for heating, although this may move higher as a slightly colder spell is due.