Ice Apocalypse In Texas Spurs Up Gas Prices In Europe
The icy apocalypse in Texas and the temporary ban on the export of gas (and hence LNG) out of the state are pushing up spot gas prices in Europe in spite of a powerful thaw.
On Thursday, February 18th, at the Dutch TTF hub, which affects prices around the world, the price of gas for delivery on Friday rose to $ 213 per thousand cubic meters from a monthly low of $ 207 (for delivery on Tuesday).
Europe was covered by a strong thaw - exactly one week after the strongest frost during the winter. Already on Saturday, February 20, the air temperature in most of Western Europe will exceed 10 degrees Celsius, and at the beginning of next week it will rush to storm the 20-degree mark. However, the price of gas, although it has decreased in relation to the recent peaks, is receiving quite strong support and even reinforcement by news from the United States. Due to severe frosts, the Texas authorities have limited the export of gas outside the state. Low temperatures lead to power outages and oil production suffers.
Meanwhile, the level of stocks in underground storage facilities in Europe went below 40% - on Thursday morning it was 39.82%. This is 6 percentage points below the average over the past five years and only 7 points above the 2017 level - the lowest level in history.
According to the Gas Infrastructure Europe portal, gas reserves in Germany (on the main gas market in Europe) decreased to 31.72%, in Austria - to 42.2%, the Czech Republic - 37.14%, Poland - 49.52% , France - up to 26.48% (the lowest level among the countries of the region), in Ukraine - 46.96%.
The energy crisis sparked by the extensive winter storm that currently nightmares Texas has already turned into a water crisis, with millions of homes and businesses dealing with burst pipes or forced to boil snow for drinking as utilities suffer from frozen wells. and sewage treatment plants are forced to operate on a backup power supply.