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We are pleased to present our latest Northwest European Gas Market Review.

Highlights of our May 2021 report include:

  • Gas prices: The average gas price in Northwest Europe rose to €22.5/MWh in May, 23% higher m-o-m. This surge in gas price is driven by high carbon prices favouring coal-to-gas switching for power production and the low levels of storage inventory amid tight supply
  • Consumption: Total gas consumption in Northwest Europe was 11% lower m-o-m as the region faced warmer weather in May than in April
  • Supply: In line with lower demand, the overall monthly gas supply decreased by 4bcm in May, i.e. down 13%. The drop came via a reduction in indigenous production, LNG supply and storage withdrawals. However, pipeline supply remained robust, with supply from Norway and Russia accounting for 32% and 34% of the overall monthly gas supply, respectively
  • Indigenous production: Dutch production in May decreased by 34% m-o-m, falling to 1.7bcm, lower than the production in the same month of the previous year. GB production fell 2% m-o-m and 25% y-o-y
  • Pipeline imports: Total pipeline imports remained stable at around 18bcm in May, 3bcm higher y-o-y. Despite the decrease in demand, the high gas prices and fall in LNG imports helped sustain Russian pipeline exports to Europe. Russia’s share of supply in Northwest Europe rose to 34% in May, up from 29% in April
  • LNG: Led by GB, the LNG send-out to regasification terminals fell by 28% y-o-y. The volume of regasified LNG decreased by 19% m-o-m, falling faster than European gas demand. This drop was led by a tight LNG market where spot cargoes were attracted to higher-priced Asian markets. Consequently, the LNG regasification utilisation rate reduced everywhere but the Netherlands, where the capacity remained fully saturated
  • Storage: Inventory levels in May remained below the 5-year average, struggling to recover as gas prices are high and supply is tight. However, as gas demand decreased in May, storages switched to net injections, and the average days of demand in store in Northwest Europe rose from 24 to 28 days

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