European Gas Hub
No Result
View All Result
  • Premium Content
    • All
    • Coal Market
    • European Energy Policy
    • European Gas Pipeline Infastructure
    • European Gas Prices
    • European Gas Storage
    • European Gas Supply & Demand
    • LNG
    • Russia
    • Unconventional Resources
    • Hydrogen
    • European power generation
    • Other
  • Blog
  • Events
  • Industry Links
    • Industry Association
    • Research Institute / Think Tank
    • Regulatory Body
    • Government Body
    • Consultant
    • Gas Prices
  • Newsletter
  • Videos
  • Other Hubs
    • GLOBAL LNG HUB
    • GLOBAL MARITIME HUB
    • THE COAL HUB
  • Subscribe
  • My account
  • Login
SUBSCRIBE
  • Premium Content
    • All
    • Coal Market
    • European Energy Policy
    • European Gas Pipeline Infastructure
    • European Gas Prices
    • European Gas Storage
    • European Gas Supply & Demand
    • LNG
    • Russia
    • Unconventional Resources
    • Hydrogen
    • European power generation
    • Other
  • Blog
  • Events
  • Industry Links
    • Industry Association
    • Research Institute / Think Tank
    • Regulatory Body
    • Government Body
    • Consultant
    • Gas Prices
  • Newsletter
  • Videos
  • Other Hubs
    • GLOBAL LNG HUB
    • GLOBAL MARITIME HUB
    • THE COAL HUB
  • Subscribe
  • My account
  • Login
European Gas Hub
No Result
View All Result
Home Gas Prices

Portugal facing gas supply constraints

Editor by Editor
2 years ago
min read2 min
Portugal natural gas
Share on FacebookShare on TwitterShare on Linkedin

Portugal is running out of options to meet the strong demand for natural gas driven by frigid weather during the 2020-2021 winter. Parts of the country are already facing shortages of the fuel, and the situation is set to deteriorate during the rest of the season.

RELATED POSTS

European-gas-storage

The true value of European gas storage

4 days ago
European gas storage spreads normalise

European gas storage spreads normalise

1 week ago
European-gas-price

What’s behind the European gas price decline?

2 weeks ago

Weather is expected to favour gas consumption in Portugal in Q1 2021, which will worsen the country’s gas supply tightness. Preliminary weather forecasts suggest average temperatures in Portugal for Q1 2021 compared with 2C above-average temperatures seen during the same quarter in 2020.

Portugal natural gas

Figure 1: Portugal’s monthly LNG imports. Source: Energy Projections European Union LNG imports dashboard

The country has little option but to rely on spot LNG despite the high prices of the fuel. This is also a risky alternative because there is no guarantee that LNG cargoes can be secured when need be given the current tight spot market.

Regasified LNG is Portugal’s largest source of gas supply. The country purchases most of its LNG under long-term contracts, but it also counts on the spot market to meet spikes in gas demand especially during winter. Portugal imported 0.62 million metric tonnes (MMt) of LNG between 01 December 2020 and 31 January 2021, which was a year-on-year fall of just over 17%.

Persistently high LNG prices have weighed on Portugal’s LNG uptake. The price of spot LNG for Europe’s Atlantic Coast averaged $8.1/MMBtu for the week ending 31 January 2021, according to Energy Projections’ price assessment. This is a sharp increase from the average of $3.9/MMBtu for the same week in 2020.

Europe’s Atlantic Coast spot LNG price has witnessed significant falls over the past two weeks, but the declines have not yet been sufficient to reinvigorate Portugal’s uptake of the fuel. Energy Projections’ assessment indicates the spot price averaged $18.3/MMBtu for the week ending 17 January 2021.

Portugal is depending heavily on its gas inventories, which are already significantly depleted, to meet demand. This option alone is unlikely to see the country through to the end of the winter.

Portuguese gas storage sites were only 58% full on average between 01 December 2020 and 31 January 2021, much lower than the average fullness of 93% during the corresponding 2019-2020 period.

Portugal also relies on the pipeline gas flow via Spain to meet winter demand for the fuel. However, Spain itself is grappling with the problem of high gas consumption because of cold weather, together with limited LNG supply due to skyrocketing prices of the fuel.

Consequently, the gas supply to Portugal via Spain amounted to 58 million cubic metres (MMcm) between 01 December 2020 and 31 January 2021, marking a sharp decline of approximately 43% compared with the corresponding 2019-2020 period.

Author: Energy Projections
Connect with Energy Projections on LinkedIn

Tags: Energy ProjectionsPortugalSpain
Editor

Editor

Related Posts

European-gas-storage
Gas Prices

The true value of European gas storage

4 days ago
European gas storage spreads normalise
Gas Prices

European gas storage spreads normalise

1 week ago
European-gas-price
Gas Prices

What’s behind the European gas price decline?

2 weeks ago
gas-demand
Supply and Demand

Prospects for European industrial gas demand

2 weeks ago
gas-prices
Gas Prices

International natural gas prices – Cedigaz

2 weeks ago
Global gas supply set to tighten further in 2023
Gas Prices

Global gas supply set to tighten further in 2023

3 weeks ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Trending Posts

European-gas-price

What’s behind the European gas price decline?

2 weeks ago
European gas storage spreads normalise

European gas storage spreads normalise

1 week ago
European gas prices: coal to gas switching

European gas prices: coal to gas switching

3 weeks ago
Load More

Recent Post

European-gas-storage

The true value of European gas storage

4 days ago
European gas storage spreads normalise

European gas storage spreads normalise

1 week ago
European-gas-price

What’s behind the European gas price decline?

2 weeks ago
Load More

European Gas Hub is an online platform for sharing analysis and information about European natural gas markets more info

Categories

  • European Gas Prices
  • Energy Policy
  • European Gas Infastructure
  • European Gas Storage
  • Coal Market
  • Supply & Demand
  • Gas Supply & Demand
  • LNG
  • Other
  • Unconventional Resources

Recent Posts

The true value of European gas storage

European gas storage spreads normalise

What’s behind the European gas price decline?

Energise your Tuesday!

Sign up to receive our weekly newsletter with new European gas market reports, presentations & analysis. Every Tuesday.

By signing up, I agree to our TOS and Privacy Policy.

© 2020 EuropeanGasHub | All Rights Reserved

No Result
View All Result
  • Premium Content
    • All
    • Coal Market
    • European Energy Policy
    • European Gas Pipeline Infastructure
    • European Gas Prices
    • European Gas Storage
    • European Gas Supply & Demand
    • LNG
    • Russia
    • Unconventional Resources
    • Hydrogen
    • European power generation
    • Other
  • Blog
  • Events
  • Industry Links
    • Industry Association
    • Research Institute / Think Tank
    • Regulatory Body
    • Government Body
    • Consultant
    • Gas Prices
  • Newsletter
  • Videos
  • Other Hubs
    • GLOBAL LNG HUB
    • GLOBAL MARITIME HUB
    • THE COAL HUB
  • Subscribe
  • My account
  • Login

© 2020 EuropeanGasHub | All Rights Reserved

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT

Energise your Tuesday!

SIGN UP to receive our weekly newsletter with new European gas market reports, presentations & analysis. EVERY TUESDAY!

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?