State of the Energy Market – 3rd August 2022

Daily Updates

 The Nord Stream 1 gas compressor stuck in Germany is to receive some special treatment, as Germany’s Chancellor Scholtz and Siemens Energy CEO, Christian Bruch, are both due to visit the compressor that is currently stuck in limbo.  It will be interesting to see if their visit will help to resolve the documentation issues that is currently preventing it from being returned to Russia.  The expectation is that once the compressor is operational, the gas volumes currently being exported from Russia to Europe will increase, which will help to settle prices.  However, Gazprom have indicated that there are other compressors that may soon also require maintenance. 

 

Power

August 22 wholesale power prices dropped by 3% to close at £361.48 per MWh.

Gas

August 22 wholesale gas prices also dropped by 3% to close at £361.48 pence per therm.

In other energy related news:

  •     Russian gas exports to Europe are now at record low levels. There was a 36% drop for July 22 compared to July 21,  With Russian gas storage facilities expected to be full within two months and Russian consumer demand dropping, current demand is 2% down on last year, if Russia continues to flow gas to Europe at current levels, it may soon need to take the difficult decision to mothball some of its gas producing fields.  Even though exports to China have considerably increased so far this year, the total volumes reaching China only equate to approximately one third of the drop in volumes reaching Europe. 

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