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LNG, stocks in Europe at their highest, prices falling.

LNG imports outside Russian federation and stocks in Europe have increased.

Europe wants to control the prices of energy, mainly gas, it has taken a number of measures to reduce energy demand and at the same time it increases these stocks of LNG.

Faced with the risk of an energy crisis, Europe was able to fill these stocks. Thereby,

Germany's strategic storages are 81.07% full. Besides France, four other European countries out of 27 are at more than 90%: Portugal (100%), Poland (99.56%), Sweden (90.8%) and Denmark (93.76%). %). All countries filled their tanks more than 50%, the worst off being Latvia (55%) and Bulgaria (59%).

In Europe, Russian gas imports fell from 65% to 9%, the total LNG storage capacity being 1165.9 TWH, the volume of imported LNG (excluding the Russian Federation) more than doubled in less than 4 months, this import volume could have been higher, but the lack of regasification terminals limited it.

However, major work was quickly carried out to increase this regasification capacity with the installation of floating terminals.

According to Bloomberg

" Natural Gas Buyers Hoarding Fuel at Sea to Prepare for Winter Europe’s congested LNG import terminals spur floating storage. Ships are parked in sea off Europe, Asia and Central America. Energy traders and power utilities are storing more liquefied natural gas at sea, an unusual move to hoard supply for winter as the market faces a severe shortage".

The European Commission instead of capping natural gas prices, it has chosen to act on energy consumption and excess income from the energy sector to control energy costs

European natural gas prices again tumbled Monday as storage inventories climbed and governments continued to discuss measures aimed at better controlling soaring energy costs.

LNG prices have therefore been falling since 15/09/2022 and we believe that this fall will continue at least until October. For the 4th quarter of 2022, the price of LNG will depend on the harshness of the winter.


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