2023 Could be Daunting for Europe

Warm Winter in Europe Eases Restocking Concerns, but 2023 Still Looks Daunting (NGI)

Jacob Dick (Jan. 11): As Europe experiences one of the warmest winters on record, Kpler’s Eleni Papadopoulou says that a severe supply crunch and rationing are becoming “somewhat subdued” thanks to “ample regional gas and LNG.” If China’s LNG demand growth is modest in 2023, Kpler expects the flow of additional volumes to be partially offset by potential import declines from Japan and South Korea, lowering the chances of spring price spikes. Papadopoulou: “However, when looking at daily gas availability, there is an upside risk from the substantial annual decrease in Russian gas flows to Europe still leaving the market exposed to price volatility from multiple factors such as weather, and any unplanned infrastructure/ supply issues.” … At the crux of Europe’s upside risk is the fact that it still faces a fundamentally tight natural gas market until at least 2024 when substantial additions of USLNG capacity come online, Poten’s Jason Feer told NGI. Link to Content