If Q2 European gas market can be accompanied by a soundtrack, it will be ‘Right Here, Right Now’ by Fatboy Slim. The name of that song accurately describes the dynamism of things taking place since the very beginning of this year’s gas summer.
Europe has already begun to experience lower production from the NCS. Norwegian maintenance, that has started during the second ten days of Apr, represents the first significant decline in gas supplies to NWE since Jan.
2021 Norwegian outages are developing according to their usual timing, in contrast to last year. In 2020, the works on the country´s facilities were postponed until Q3, thereby extending a series of shutdowns of other supply routes. It assisted in clearing a part of oversupply, preparing the ground for the subsequent growth in prices.
What influence Norwegian maintenance will have on the market this time? Not a simple question, given the need for filling up storages on the one hand and favourable conditions for Europe-bound LNG deliveries on the other. As of now, the most that can be said is that the longer UGSs do not go into injection mode, the stronger should be the effect of Norway’s lower supplies throughout this quarter.
Source: Yakov Grabar
See original post by Yakov at LinkedIn.