American gas tanker

The Russian “Kommersant” newspaper reported that LNG producers in the United States are preparing to flood Europe with the substance in light of the recovery of blue fuel prices in the world.

Today, Monday, the price of blue fuel in the largest gas center in Europe TTF reached the level of 186.3 dollars per thousand cubic meters, while the price of the futures contracts for next November exceeded the level of 187 dollars per thousand cubic meters.

According to “Kommersant” newspaper, this is the highest level since the beginning of December 2019, and much higher than the lowest level that was recorded last May, when the price reached $ 34 per thousand cubic meters.

In light of the high prices, there is economic feasibility to supply liquefied gas from the United States to Europe, as the price of gas futures contracts in the American Henry Hub for next January recorded a level of $ 126 per thousand cubic meters, and for next February, $ 130 per thousand meters cubic.

An analyst from the agency “Fitch” believes that the supply of liquefied gas from the United States to Europe will return to levels before the Corona crisis, unless there is a decrease in gas prices by November 2020, but he ruled out the growth of gas demand in Europe due to the fullness of ground gas deposits in Europe By 95%, in addition to the risk of closing economic activities again due to Corona.

Meanwhile, analysts of “Standard & Poor’s” agency believe that the recovery in demand and the rise in LNG prices in Asia will stimulate production in the United States to reach its maximum capacity by the end of the fourth quarter of this year.


Please enter your comment!
Please enter your name here