Geopolitical tensions cause gas price rebound for energy across Europe
January 26, 2022
Jeremy Nicholson, Petra Puskarova
In this week’s Resonance energy market podcast Jeremy Nicholson talks to Alfa’s Dr. Petra Puskarova about European energy markets as geopolitical tensions see energy prices remain challenging.
In this week’s Resonance you will learn about:
- Gas – price increases due to political tension related to Ukraine.
- Europe remains an important customer for Russian gas for now, but plans afoot with Asia could see that position change.
- LNG – Supplies are good for now but it’s important to watch shoulder months because of demand from Asian markets.
- Less gas storage this winter, but demand is lower. Summer gas storage will also likely be as low as last year.
- Gas and Nuclear Taxonomy as Europe debates the status of sustainable low carbon transition fuels for power.
- France naturally backing nuclear, despite challenges with fleet of power
stations and the impact on prices.
- Germans are looking to gas as a transition fuel to a lower carbon economy.
- Surprisingly Spain is opposed to gas despite generation still being at c40%
and dependence on LNG increased after Algerian pipeline via Morocco went off.
- Carbon – The pressure is still on as coal remains popular. The risk remains on the upside to push European power prices to new highs.