In the third quarter of 2022, European and Asian spot gas prices reached new record highs but remained highly volatile. Driven by the Russian gas crisis and threats of pipeline supply cut, European gas prices peaked at over €300/MWh at end-August, contributing strongly to the European inflation. However, three bearish factors have moderated European prices over the last few weeks: the good replenishment of stocks, the very strong growth in LNG imports at the expense of China and the sharp reduction in gas consumption (plants’ closures and industrial demand destruction, energy substitution and energy savings) in response to the surge in gas prices. The massive inflow of LNG and the destruction of demand in Europe have kept storage levels high and these two factors will be crucial to get through the next winter without a deficit.
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Quarterly report – Q2 2022 – International natural gas prices
In the second quarter of 2022, European and Asian spot gas prices were on average lower than the levels of the first quarter but experienced strong trend variations. After an exceptional price surge in the days following the invasion of Ukraine in early March, prices fell back to levels of around $20/MBtu to $30/MBtu until mid-June. In Europe, the mild temperatures, the sharp fall in gas consumption, the growth in LNG imports and the high inventory filling rates had a moderating effect on prices. But since mid-June, Russian gas supply cuts through the Nord Stream pipeline and the shutdown of the Freeport LNG plant in the United States have caused spot prices to soar again. Europe is entering the third quarter on high alert, with the risk of prolonged disruptions in Russian gas supplies, prompting emergency measures.
The United States of America enters the global clean hydrogen race
The International Association Cedigaz has just released its hydrogen report: “The United States of America enters the global clean hydrogen race”, which assesses market developments, policies and prospects of the hydrogen industry in the United States. The report also provides data on US clean hydrogen production projects.
Although late in adopting clean hydrogen and lagging behind other major nations in defining a national strategy, the United States has prepared the groundwork for several years and is well positioned to become a global leader in clean hydrogen. The US Government is determined to lead the race in the global clean hydrogen market.