CEDIGAZ Insights - Page 4

UNDERGROUND GAS STORAGE IN THE WORLD – 2021 STATUS

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Including an analysis of the current global gas crisis – New report by CEDIGAZ

Underground gas storage is back in the spotlight with the current gas crisis, which once again illustrates its importance for security of supply, especially in Europe. The new 2021 Underground Gas Storage Report published by CEDIGAZ therefore includes an in-depth analysis of the underlying causes of the current crisis and highlights the crucial importance of storage to ensure the flexibility of the gas system. The report also provides an update of key global UGS statistics and regional dynamics at work with a focus on China and Russia.

 Current gas crisis: Blame the weather and the market

European spot natural gas prices and Asian spot LNG prices reached all-time highs in October. The steep rise reflects a severe mismatch between gas supply and demand and was caused by a combination of several factors: a strong recovery in gas demand, notably in China, where coal shortages and environmental pressure reinforced the call on gas demand; unplanned LNG supply outages; extreme weather events that put immense pressure on the gas supply system, as well as on hydropower and wind generation; a sluggish recovery in gas production; and lower natural gas storage inventories in Europe.

Will Gas Be the Game-Changer for Oman’s Transition to a Brand New Era?

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The latest report from CEDIGAZ delves into Oman’s gas and LNG success story since the late 2010s. The sultanate’s gas revival since the start-up of the Khazzan tight gas and condensate field in late 2017, combined with renewed exploration momentum on the upstream front, has opened up new possibilities for its domestic gas market and its role as one of the longest-established LNG exporters in the Gulf region and in the world.

The report examines the opportunities and the risks linked to its gas and wider energy fundamentals, be it in terms of supply and demand, policy, upstream & LNG strategy and interplay with other fuels.

Increased domestic production, combined with improved gas demand management especially in its power sector, has allowed the country to change its supply and demand balance at home and revive its LNG business, while a few years ago, Oman had contemplated mothballing some its existing liquefaction capacity.

UNDERGROUND GAS STORAGE IN THE WORLD – 2020 STATUS

Posted in CEDIGAZ Insights, Underground Gas Storage on

The newly issued 2020 report on UGS by CEDIGAZ highlights the key data from the 2020 update of its global UGS database and provides a detailed analysis of 4 markets of utmost importance in balancing global gas markets now and tomorrow: Europe, Ukraine, Russia and China.

2020 UGS HIGHLIGHTS:

Europe: unprecedented high stock volumes in storage

Uncertainty about the outcome of the Russia-Ukraine negotiations after the expiry of the transit contract between Gazprom and Naftogaz at the end of 2019, strong LNG capacity additions and the Covid-19 triggered demand crunch have resulted in record filling levels of European UGSs and have led European shippers to turn to Ukraine to store their excess gas.