On the main gas exchange in Amsterdam, the price rose more than 3% on Wednesday morning to 143.25 euros per megawatt hour of gas. It was already known that, especially in northern Europe, warming is picking up now that temperatures drop below zero. It will stay cold for the next two weeks as well, say the weather forecast.
Meanwhile, China is easing increasingly stringent corona measures, which also gives the Chinese more room for manoeuvre. This will also make China more active on the gas market, because the industry can now produce and transport more.
With the loss of gas flows from Russia due to sanctions against the country over the war in Ukraine and the backlash from Moscow, Europe has become more dependent on imported liquefied natural gas (LNG). It is precisely in this market that Europe will face increased competition. Also because temperatures drop in China and the demand for gas and coal increases. So far, more limited gas demand from China has served Europe well. Europe’s gas reserves are currently full. But the risk remains that a cold snap will quickly change that.