L’Europe wants to empty the speculative bubble that has arisen over prices gas On the continent. Buying together directly in United States, at American prices and with a longterm perspective. The commitment is written in black and white in the political deal Brussels struck with the United States to ramp up shipments of liquefied natural gas (LNG) with Stars and Stripes, quickly marking a sharp drop in volumes arriving from Russia, on which the EU depends for about 40% of its needs. In fact, the text of the agreement speaks of LNG supplies, the pricing formula of which “should take into account the Henry Hub Index, which is the US market reference for methane prices, which are traditionally lower than the European equivalent. , a stock exchange index on the Dutch market that sets the conditions for gas trading within the Dutch network and across Europe. The Henry Hub now joins the ttf (without replacing it). On the eve of the announcement, the value of the American index was about seven times lower than the TTF price after months of the Dutch platform being the protagonist of an unstoppable price race even if the Henry Hub fell by 12% (at about 16 euros per megawatt hour) after the on Friday between United States President Joe Biden and European Commission number one Ursula von der Leyen formalized an agreement that envisages an additional 15 billion cubic meters of gas by the end of 2022, reaching a pace of 50 billion per year by 2030.
“Gas imported for 60 cents, they charge 1.6 euros”, Minenna: High finance has wrong forecasts
According to qualified sources in Brussels, the new open border for American gas (usually aimed at the advantageous Asian markets) will be particularly attractive due to the possibility mentioned among the “other stabilizing factors” included in the agreement signed by the EU and the US be mentioned to enter into longterm contracts. A prospect that would be a winning solution for both our overseas allies and our importers, and of course businesses and families who would pay low bills.
THE AGREEMENTS
Longterm contracts are usually cheaper than buying gas on the spot market, which Europe is increasingly turning to. Those familiar with the workings of the LNG market are convinced that even adding the significant operating costs of liquefaction, shipping and regasification prior to grid injection and distribution to end users technical phases that would add approximately double the amount to be paid , after all, US liquefied gas would give Europe significant savings compared to the price explosions on the continent. The political commitment also has its own economic justification, given the opportunity for companies to buy direct from the US without intermediaries by hiring gas carriers to transport the LNG to Europe. And in the face of joint sales contracts negotiated by the European Union to maintain the weight of a single market and achieve better conditions: the lesson of the supply of antiCovid vaccines, in short, applied to gas.
THE DECISION
What was done with the USA could then soon be repeated with other international LNG suppliers, which have been under great pressure from Brussels for weeks. Speaking to Qatar, one of the world’s top exporters, at the Doha Forum yesterday, Ukrainian President Volodymyr Zelenskyy asked him to play his part in the EU’s diversification plans, which he plans to complete with Russian methane within the next five years. In the current longterm contracts, Doha has the option to divert 15% of supplies to markets where it can be sold at higher prices, but has ensured that Qatar does not exercise the clause and continues to supply its liquefied natural gas to Europeans .
© REPRODUCTION RESERVED