Russia (bbabo.net) - Against the background of the gradual devastation of European underground gas storage facilities (UGS), exchange prices for blue fuel soared above $ 1,700 per thousand cubic meters. The quotes are spurred on by news about a decrease in the volume of booking by Gazprom for the capacities of the Yamal-Europe gas pipeline and the refusal of the Russian company to reserve additional volumes of pumping along the route through Ukraine.
What is happening in Europe is very reminiscent of hysteria, since the only problem for the countries of the Old World is still the exorbitant exchange prices for gas, and by no means its shortage. In almost two and a half months of the heating season, European UGS facilities were emptied from a maximum filling level of 77.5% to 59%. That is, 24% of the gas was pumped out from the storage facilities, and 76% remained. There are 3 months left until the end of the heating season in Europe. That is, the Europeans can increase the gas intake from the underground storage facilities by at least 2.5 times for this period.
This may not be enough only if severe cold weather sets in in Europe. But, at the moment, there were no severe frosts in the region, and until the end of the year, for example, in Germany they promise warm weather (up to +8 degrees Celsius in Berlin and Gambue). Subzero temperatures are expected only at nights in the first two weeks of January - up to minus four degrees, which cannot come as a shock even for heat-loving Europeans. Similar weather is promised in Austria and the Czech Republic. The forecast is even better for the Netherlands, Belgium, France, not to mention the more southern countries. It's cold only on the Scandinavian Peninsula, the Baltic States and Poland.
But heat supply and electricity generation in Norway and Sweden do not depend on Russian gas, and in Denmark and Finland they are almost independent. Polish UGS facilities are 90 percent full, and Latvian ones - 58 percent. There are no storage facilities in Lithuania and Estonia, but in Lithuania there is a liquefied natural gas (LNG) terminal, which receives LNG from Russia at an enviable frequency.
There are now only three countries in Europe where the filling of UGS facilities is below 50 percent - Austria (37 percent), the Netherlands (41 percent) and Ukraine (32.6 percent). The first two countries are members of the European Union and they have nothing to fear. The existing infrastructure and the mechanisms of mutual assistance adopted at the legislative level will not allow them to freeze. Ukraine may find itself without fuel, the country will not be able to buy gas at European prices. But this fact is not particularly discussed in the European Union, focusing on its internal problems.
Naturally, the question arises about those responsible for this situation. The British edition of The Guardian released a material where it is said that the rise in prices was inspired by Gazprom, which is cashing in on record demand and high gas prices. One can argue that the Russian company sells gas to European consumers several times cheaper than at exchange prices. In the fourth quarter, Gazprom expects the export price of its gas at $ 550 per thousand cubic meters. The company occupies a third of the European gas market and operates under long-term contracts, which it regularly fulfills.
Algerian pipeline gas is also supplied to the EU on the same terms - less than 10 percent of the market. About 60 percent of Europe's gas is produced locally and exported from other countries. It is from these volumes that the exchange gas supply in the EU is formed and, accordingly, exchange quotations.
In the absence of a real shortage of goods on the market, it is difficult to blame the company for not supplying additional volumes to reduce prices for it. You can also demand from Apple or Samsung to double the production of smartphones so that their cost would fall. To deny that the current situation is beneficial to Gazprom is foolish. The company is expected to make a record profit, of which a significant part will go to dividends for the main shareholder (the state) and investments in future projects.
But Gazprom took advantage of the situation rather than provoking a rise in prices. It may be recalled that until recently the company tried to launch Nord Stream 2 this year, which would immediately cool the passions on the European market. The United States and the "greens" did not allow this, which are increasingly turning from fighters for a good environment into lobbyists for the interests of manufacturers of energy storage devices and equipment for renewable energy sources (RES), as well as miners of rare earth metals. As a result, gas prices in Europe are rising, pushing up electricity tariffs.
In the long term, this is beneficial for the same manufacturers of equipment for renewable energy sources and energy storage. This is also beneficial for the United States, for which the EU is increasingly not an ally, but a competitor. This is profitable for China, which, without particularly suffering from high prices for gas and coal (China extracts most of its energy resources), has inflated prices for metal and petrochemicals. This is not beneficial to Europe, but, as always, Russia is accused.
bbabo.Net