Aurora’s gas system performance report provides a monthly snapshot of key operating characteristics for the European gas market. The key statistics include prices, volumes, trade, suppliers market share, indigenous production flexibility and storage provision for security of supply.
Highlights of our May 2019 report include:
1. Gas prices: Gas prices continued their downward trend, falling by nearly 11% month-on-month due to abundant LNG supplies in Europe. Warmer-than-normal winter and ample spot cargoes from Australia, Russia and the U.S. allowed increasing flows of LNG to the European gas market.
2. Consumption: NW European gas consumption increased 32% year-on-year, mainly caused by a 1.8 bcm increase in both non-power and power consumption in France and a 1.3 bcm increase in gas-for-power consumption in Germany.
3. Supply: LNG imports increased by 3.2 bcm year-on-year, causing LNG’s share of gas supply to increase from 8% to 18%, with combined declines in Russian and Norwegian pipeline supply, of 9%-points across the same time period. Norwegian imports decreased by 0.2 bcm, whilst Russian pipeline imports decreased by 1.0 bcm year-on-year.
- Indigenous production: Dutch production fell by 9% month-on-month due to an earthquake which hit the Groningen region in May. GB production was 4% higher in the same period, due to increased domestic demand.
- Pipeline imports: Increased LNG imports led to declines in total pipeline imports of 7% year-on-year, driven by 1.3 bcm lower flows through non-Nord Stream pipelines. Flows through the Czech route accounted for 62% of the total decrease.
- LNG: Cheaper LNG imports caused NW Europe LNG imports and terminal utilisation to increase year-on-year. Dutch and GB LNG imports drove the increase, with an average 450% rise across the same time period, offsetting declines in imports of Norwegian gas.
4. Storage: Although storage refill increased by 44% month-on-month, injected volumes were 40% lower than in the same period last year, since lower storage withdrawals than normal this winter (due to higher LNG imports), decreased available capacity in gas storages.
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