El precio del gas es más barato por primera vez en España que en la UE

The price of gas is cheaper for the first time in Spain than in the EU

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The organized Spanish market of gas (MIBGAS) is at a level “significantly cheaper” than the reference European market of the EU, the TTF –Title Transfer Service, for its acronym in English– Dutch, due to the lower dependence in Spain on gas supplies from Russia, being the first time this happens.

According to the National Commission of Markets and Competition (CNMC), last year, the price differential converged with that of the main European markets, with the D+1 product standing at an annual average of 1.19 euros per megawatt hour ( MWh), above the Dutch TTF. The year was marked by very low demand and prices, due to the pandemic, in a situation of economic recovery that boosted demand and the price of gas in international markets.

Starting in October, several factors began to put pressure on the international gas markets: the low filling level of underground storage in Europe; the limitation of Russian gas inputs to the quantities contracted in the long term; geopolitical uncertainty due to tensions between Russia and Ukraine, and the delay in the certification and start-up of the NordStream 2 gas pipeline.

In this way, gas prices set historical highs in Spain in the winter of 2021-2022 (183 euros/MWh on December 21, 2021), due to the uncertainty of the Russian supply and the strong competition for spot shipments of LNG to world level.

On an annual average, the price of the D+1 product in MIBGAS was 47 euros/MWh, which represents an increase of 37 euros/MWh in relation to the average price of 2020 (10.25 euros/MWh, the lowest in the entire historical series), reflecting an increase in the average annual price of over 300%. In the case of Spain, since November 1, 2021, imports of Algerian gas were stopped due to the Tarifa interconnection, although the capacity of the Medgaz gas pipeline was expanded by 25% (from 8 to 10 bcm), which came into operation in the first months of 2022. The organized gas market in Spain, operated by the MIBGAS company, celebrated its sixth year of operation in 2021. In 2021, the total volume traded in MIBGAS was 68,793 gigawatt hours (GWh), approximately 18% of the national gas demand, compared to 11% the previous year.

The trading volume increased by 72.9% compared to the trading volume of the year 2020 (39,780 GWh), and recovered the growth trend that existed before the coronavirus pandemic.

In the European context, the greatest growth occurred in the Dutch TTF market, which increased its leadership over the rest of the European markets. By contrast, trading on the British NBP continued to decline for the sixth consecutive year, penalized by Brexit. – Eph

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Euro rises despite Germany

lll Slight improvement. The euro rose to the $1.0250 level yesterday as market sentiment improved and risk appetite rose despite a sharp drop in business confidence in Germany. The European Central Bank (ECB) set the reference exchange rate for the euro at 1.0236 dollars. Investors ignored the global economic slowdown and the fall in business confidence in Germany in July, to the lowest value since June 2020, because the country’s economy is on the threshold of a recession due to rising prices. of energy and the threat of gas shortages. The single currency was traded in a trading band between $1.0181 and $1.0254.

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