Latest news with #GasInfrastructureEurope
Agriland
02-05-2025
- Business
- Agriland
Research: Reusing gas pipelines essential to biomethane supply
The co-chair of the Gas Infrastructure Europe (GIE) biomethane working group, Padraig Fleming has presented an EU wide study on the role of biomethane in decarbonising the European energy system in Brussels this week. The study demonstrates the vital role that Europe's existing gas infrastructure, pipelines and underground storage, will play in scaling up biomethane, a renewable gas derived from organic waste, to help meet the EU's climate goals. It is projected that up to 101 billion cubic meters of biomethane production across the EU by 2040. This is the equivalent to 20 times Ireland's annual gas demand. The study concludes that reusing existing gas pipelines and infrastructure will be essential to connect biomethane supply, often in rural areas, with demand centres in towns and cities, while also balancing seasonal demand peaks. Gas Networks Ireland's Padraig Fleming presented the study's findings and moderated a panel discussion featuring senior EU policymakers and energy leaders. He said: 'This study confirms what we in Ireland have long believed, that biomethane is not only key for decarbonisation, but also an opportunity to revitalise rural economies, strengthen our energy independence and make use of the infrastructure we already have. 'Ireland's €3bn, 14,725km national gas network, is considered one of the safest and most modern renewables-ready gas networks in Europe.' 'Biomethane offers a homegrown, sustainable energy source that can strengthen energy security, boost energy sovereignty and deliver significant emissions reductions, particularly in agriculture and heating,' Fleming added. Fleming also believes that raising awareness of biomethane's environmental and economic benefits within rural and farming communities, will be vital to building support and accelerating adoption. Biomethane According to Fleming, in order to unlock biomethane's potential, the EU must address a number of key barriers. This includes establishing a level playing field for biomethane among renewable energy sources, with long-term support schemes and regulatory stability. 'We also need an EU-wide certification scheme for cross-border renewable gas trade and a fair regulatory framework for renewable gas technologies and connections,' Fleming said. Gas Networks Ireland said it is working to transform the national gas network to operate on 100% renewable gases by 2045.
Zawya
25-03-2025
- Business
- Zawya
China's LNG import plunge comes at just the right time for Europe: Bousso
(The opinions expressed here are those of the author, a columnist for Reuters.) LONDON - China's imports of liquefied natural gas have sputtered this year, freeing up volumes that are helping Europe restock its rapidly dwindling supplies following a harsh winter. China's LNG imports are expected to drop by 22% in the first three months of the year compared to 2024 to 15.8 million metric tons, the lowest level since 2020 for the period, according to analytics firm Kpler. The decline is due to a confluence of factors, including reduced demand for residential heating in northern China driven by warmer weather, weaker industrial demand, higher domestic gas production and increased pipeline gas imports. It might be tempting to connect this decrease in energy imports to the escalating trade war between China and the United States. President Donald Trump has imposed several rounds of tariffs on Beijing, which has retaliated by placing its own duties on U.S. imports, including a 15% tariff on LNG. And U.S. LNG did make up only 1%, or 62,000 tons, of China's total LNG imports in March, compared with 3%, or 188,000 tons, in January, Kpler showed. But there is limited evidence to suggest that the burgeoning trade war has weighed on Chinese economic activity or energy imports – or even that it is responsible for the country's reduced reliance on U.S. gas. Rather, lower imports from the U.S. most likely stem from the fact that the vast majority of U.S. cargoes are sold without any restrictions on their final destination, a feature not offered by other suppliers such as Qatar or many Australian producers. This means that if Chinese traders do not require all the U.S. LNG volumes they committed to buy, they can resell these cargoes to third parties, such as European buyers. JUST IN TIME In any event, the sharp deceleration in Chinese buying comes at an opportune time for Europe, as winter is nearing its end in the Northern Hemisphere, meaning the region needs to refill its gas inventories. The need is especially acute this year. A colder than usual winter coupled with the termination of the last major pipeline delivering Russian gas into the region has led to a sharp draw in Europe's stocks, which stood at just 33.9% of capacity by March 21, far below last year's 60%, according to data from Gas Infrastructure Europe. Moreover, the incentives to store gas have been limited since November by a distortion in European gas prices, whereby forward gas prices for summer have been trading at a premium to next winter's prices. The price inversion is largely a result of European Union rules requiring member states to fill storage to 90% of capacity by November. All these factors sent benchmark European LNG prices to a two-year high of nearly 60 euros per megawatt hour by February 10, far exceeding Asian prices. This created an arbitrage window that many sellers exploited. In fact, several cargoes originally headed to Asia in recent months have been diverted to Europe, highlighting how much liquidity and flexibility have risen in the global LNG market. While European gas prices have come down sharply from their recent highs, both because supply has been diverted to the region and because of news that the EU might modify its storage capacity rules, Europe's large imports have persisted. Traders thus appear to be betting on a change in European pricing dynamics. LNG imports surged in March to 10.8 million tons, a record-high for the first three months of the year, according to Kpler. U.S. cargoes accounted for 54% of total imports. The higher imports might already be reversing the decline in inventories, which posted on March 22 their first increase - of 0.06% - since the start of November, according to GIE data. Europe has relied heavily on LNG imports since Russian pipeline gas supplies started being reduced in the run-up to Moscow's invasion of Ukraine in February 2022. The sharp drop in inventories this year means the region will have to import an additional 20 million metric tons, or around 250 cargoes of LNG, compared with last year to meet the filling targets, according to Reuters' calculations. The good news is that a large volume of new LNG supply is set to come online later this year and over the next few years, mostly from Qatar and the United States. This will add liquidity to the fast-growing LNG market, offering traders more arbitrage opportunities that could potentially help reduce regional price volatility. But for now, the slowdown in China's imports is giving Europe a badly needed lifeline as it faces the challenge of refilling its depleted gas inventories by next winter. ** The opinions expressed here are those of the author, a columnist for Reuters. ** Want to receive my column in your inbox every Thursday, along with additional energy insights and trending stories? Sign up for my Power Up newsletter here. (Reporting by Ron Bousso Editing by Mark Potter)
Reuters
24-03-2025
- Business
- Reuters
China's LNG import plunge comes at just the right time for Europe: Bousso
Summary Chinese Q1 LNG imports lowest since 2020 European imports at record seasonal high in Q1 Europe enters critical gas refilling season with depleted stocks European inventories post first gain this winter on March 22 LONDON, March 24 - China's imports of liquefied natural gas have sputtered this year, freeing up volumes that are helping Europe restock its rapidly dwindling supplies following a harsh winter. China's LNG imports are expected to drop by 22% in the first three months of the year compared to 2024 to 15.8 million metric tons, the lowest level since 2020 for the period, according to analytics firm Kpler. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. The decline is due to a confluence of factors, including reduced demand for residential heating in northern China driven by warmer weather, weaker industrial demand, higher domestic gas production and increased pipeline gas imports. It might be tempting to connect this decrease in energy imports to the escalating trade war between China and the United States. President Donald Trump has imposed several rounds of tariffs on Beijing, which has retaliated by placing its own duties on U.S. imports, including a 15% tariff on LNG. And U.S. LNG did make up only 1%, or 62,000 tons, of China's total LNG imports in March, compared with 3%, or 188,000 tons, in January, Kpler showed. But there is limited evidence to suggest that the burgeoning trade war has weighed on Chinese economic activity or energy imports – or even that it is responsible for the country's reduced reliance on U.S. gas. Rather, lower imports from the U.S. most likely stem from the fact that the vast majority of U.S. cargoes are sold without any restrictions on their final destination, a feature not offered by other suppliers such as Qatar or many Australian producers. This means that if Chinese traders do not require all the U.S. LNG volumes they committed to buy, they can resell these cargoes to third parties, such as European buyers. JUST IN TIME In any event, the sharp deceleration in Chinese buying comes at an opportune time for Europe, as winter is nearing its end in the Northern Hemisphere, meaning the region needs to refill its gas inventories. The need is especially acute this year. A colder than usual winter coupled with the termination of the last major pipeline delivering Russian gas into the region has led to a sharp draw in Europe's stocks, which stood at just 33.9% of capacity by March 21, far below last year's 60%, according to data from Gas Infrastructure Europe. Moreover, the incentives to store gas have been limited since November by a distortion in European gas prices, whereby forward gas prices for summer have been trading at a premium to next winter's prices. The price inversion is largely a result of European Union rules requiring member states to fill storage to 90% of capacity by November. All these factors sent benchmark European LNG prices to a two-year high of nearly 60 euros per megawatt hour by February 10, far exceeding Asian prices. This created an arbitrage window that many sellers exploited. In fact, several cargoes originally headed to Asia in recent months have been diverted to Europe, highlighting how much liquidity and flexibility have risen in the global LNG market. While European gas prices have come down sharply from their recent highs, both because supply has been diverted to the region and because of news that the EU might modify its storage capacity rules, Europe's large imports have persisted. Traders thus appear to be betting on a change in European pricing dynamics. LNG imports surged in March to 10.8 million tons, a record-high for the first three months of the year, according to Kpler. U.S. cargoes accounted for 54% of total imports. The higher imports might already be reversing the decline in inventories, which posted on March 22 their first increase - of 0.06% - since the start of November, according to GIE data. Europe has relied heavily on LNG imports since Russian pipeline gas supplies started being reduced in the run-up to Moscow's invasion of Ukraine in February 2022. The sharp drop in inventories this year means the region will have to import an additional 20 million metric tons, or around 250 cargoes of LNG, compared with last year to meet the filling targets, according to Reuters' calculations. The good news is that a large volume of new LNG supply is set to come online later this year and over the next few years, mostly from Qatar and the United States. This will add liquidity to the fast-growing LNG market, offering traders more arbitrage opportunities that could potentially help reduce regional price volatility. But for now, the slowdown in China's imports is giving Europe a badly needed lifeline as it faces the challenge of refilling its depleted gas inventories by next winter. (The opinions expressed here are those of the author, a columnist for Reuters.) Want to receive my column in your inbox every Thursday, along with additional energy insights and trending stories? Sign up for my Power Up newsletter here.
Russia Today
04-03-2025
- Business
- Russia Today
EU rapidly depleting gas reserves
The EU has been tapping its gas storage facilities at a rapid pace and had already used up its winter stockpile by January despite seasonal temperatures remaining in line with climate norms, Russia's energy giant Gazprom has reported. Before the escalation of the Ukraine conflict in 2022, Russian gas exports accounted for 40% of the bloc's total supply. Gazprom, once the EU's main supplier, reduced its exports there dramatically three years ago, following Western sanctions and the sabotage of the Nord Stream pipelines. The EU has increased withdrawals from its gas storage facilities by 36% during the current season and by 22% above the ten-year average, Gazprom said on Monday, citing data from Gas Infrastructure Europe. As of February 28, European underground storage facilities held 39.2 bcm of gas, accounting for 38.5% of total capacity – 24.3 bcm less than a year ago. The EU has withdrawn 58 bcm of gas this season – fifty percent higher than the amount injected during the summer. This significant drawdown, combined with a reduction in reliable gas supply sources, poses challenges for the EU to refill its storage sites over the summer and prepare for the upcoming winter, Gazprom warned. The EU has been increasingly reliant on more costly liquefied natural gas (LNG) imports since Brussels prioritized eliminating its reliance on cheaper Russian energy. While several EU nations continue to rely on Russian gas, many have voluntarily halted their imports. Earlier this year, natural gas prices in the bloc climbed to their highest level in two years, driven by a combination of cold weather, declining gas reserves, and concerns over potential US tariffs on imports from the EU. Adding to the challenge, the EU has imposed binding targets for gas storage, requiring a 90% capacity level by November 1, 2025. The sharp decline in European gas storage levels has posed a serious challenge for both governments and energy consumers across the region. Western Europe is already importing substantial volumes of LNG at elevated prices, with EU and UK imports reaching 9.8 million metric tons in January, the highest level since December 2023, according to energy analytics firm Kpler. The US accounted for 57% of the total supply. Market experts warn that the competition for gas supplies is expected to intensify. US LNG export capacity has not expanded as quickly as expected, while demand continues to grow in Asia, Egypt, and other markets.
Wall Street Journal
20-02-2025
- Business
- Wall Street Journal
Europe's Gas Price Eases on Warmer Weather Forecast
1215 GMT – European natural-gas prices continue to trade below the 50-euros-a-megawatt-hour mark amid warmer weather forecasts and EU talks to relax storage targets. 'Warmer than normal temperatures are expected by the end of the week, which should dent gas demand,' DNB Markets DNB -0.64%decrease; red down pointing triangle analysts say. Meanwhile, imports of LNG should continue to be high in the coming weeks. 'It is very much needed for Europe to get through the heating season and rebuild inventories into next year,' they say. EU storage levels are only 42.6% full, according to data from Gas Infrastructure Europe, but the European Commission is reportedly set to work with member states to allow for more flexible refilling requirements. The benchmark Dutch TTF contract trades 0.6% lower at 47.96 euros a megawatt hour. (
