Tuesday 21 November 2017

Gas prices fall despite the crisis in Ukraine

Europe relies on gas supplies pumped through Ukraine
Europe relies on gas supplies pumped through Ukraine
Europe relies on gas supplies pumped through Ukraine

Wholesale gas markets shrugged off the effects of the Ukraine crisis in April, with prices falling according to a new market survey.

Mild weather since last winter and the absence of unplanned outages helped keep gas inventories high over the period, mitigating any squeeze on prices according to the Energy Market Report from independent gas supplier Vayu.

So-called day-ahead prices finished trading on Friday last at 48.8p, down almost 26pc since the beginning of the year, according to the report.

Prices are just over 23pc lower than at the same point in 2013.

Weaker prices fed into the lower pricing of gas for the May 2014 contract and other contracts due to expire over the next three months, Vayu said.

The crisis in Ukraine remains a risk and will feed into volatility in major energy markets including the UK, where the bulk of Irish gas comes from, she said.

Russia provides approximately a quarter of European gas, a third of which comes via pipelines through Ukraine.

"Any disruption in supply would have knock-on effects on prices in Ireland... However, Britain – which is Ireland's major source of gas – is better placed to handle supply disruptions compared with countries in Central and Eastern Europe that rely more heavily on Russian supply."

Irish Independent

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